When I spotted this trade example, I had to send it to you. Take a look below and I’ll show you what helped me uncover it, how to get the biggest potential trade benefit, and also, I’ll update you on a previous example.
Unity Software Inc. (U) just created a “fin” on the CCI indicator at the bottom of its chart. Let me explain and show you how this example would work as a trade.
The Commodity Channel Index (CCI) reveals big reversals as they are about to happen. To get more info on the CCI, click here. On this chart you can see the pattern shaping up:
This latest move is heading up to the zero line indicating a bullish move. We want CCI on U to go up to create a fin shape. We also want the price to go up to at least $33 before entering a trade. The first target would be $35 and then higher.
The next step is to consider what you can do with this information. Let’s take a look at how an option trade could provide a big win.
To buy stock shares of U today, price would be approximately $32.40. If price went up to $35 you would make $2.60.
That said, option trading offers the potential of a smaller initial investment and higher percentage gain even when price is expected to rise or fall. Let’s take a look.
If you bought one Call option contract covering 100 shares of U’s stock with a Jan 19th expiration date for the 33 strike, premium would be approximately $2.14 today, or a total of $214 per contract. If the stock price rose the expected $2 the premium might increase approximately $1 to $3.14 per share on your 100-share contract. This is a 47% gain over a few days.
To learn more about trading options, see the other indicators I uses to spot trades, and to get these examples before they are emailed out, be sure to visit my site here.
I love to trade, and I love to teach. It is my thing.
I wish you the very best,
Wendy
Past potential trade update:
Last week we discussed buying SOFI calls. It did not reach our entry price.
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The information provided by the newsletters, trading, training and educational products related to various markets (collectively referred to as the "Services") is not customized or personalized to any particular risk profile or tolerance. Nor is the information published by Wendy Kirkland a customized or personalized recommendation to buy, sell, hold, or invest in particular financial products. Past performance is not necessarily indicative of future results. Trading and investing involve substantial risk and is not appropriate for everyone. The actual profit results presented here may vary with the actual profit results presented in other Wendy Kirkland publications due to the different strategies and time frames presented in other publications. Trading on margin carries a high level of risk, and may not be suitable for all investors. Other than the refund policy detailed elsewhere, Wendy Kirkland does not make any guarantee or other promise as to any results that may be obtained from using the Services. Wendy Kirkland disclaims any and all liability for any investment or trading loss sustained by a subscriber. You should trade or invest only "risk capital" - money you can afford to lose. Trading stocks and stock options involves high risk and you can lose the entire principal amount invested or more. There is no guarantee that systems, indicators, or trading signals will result in profits or that they will not produce losses.
Some profit examples are based on hypothetical or simulated trading. This means the trades are not actual trades and instead are hypothetical trades based on real market prices at the time the recommendation is disseminated. No actual money is invested, nor are any trades executed. Hypothetical or simulated performance is not necessarily indicative of future results. Hypothetical performance results have many inherent limitations, some of which are described below. Also, the hypothetical results do not include the costs of subscriptions, commissions, or other fees. Because the trades underlying these examples have not actually been executed, the results may understate or overstate the impact of certain market factors, such as lack of liquidity. Wendy Kirkland makes no representations or warranties that any account will or is likely to achieve profits similar to those shown. No representation is being made that you will achieve profits or the same results as any person providing a testimonial. Testimonials relate to various other products offered by Wendy Kirkland and not the product offered here, but all of these products are based on Wendy Kirkland's system. Performance results of other products described in such testimonials may be materially different from results for the product being offered and may have been achieved before the product being offered was developed.
Results described in testimonials from other products or the product being offered may not be typical or representative of results achieved by other users of such products. No representation is being made that any of the persons who provide testimonials have continued to experience the same level of profitable trading after the date on which the testimonial was provided. In fact, such persons may have experienced losses immediately thereafter or may have experienced losses preceding the period of time referenced in the testimonial. No representation is being made that you will achieve profits or the same results as any person providing a testimonial. Wendy Kirkland's experiences are not typical. Wendy Kirkland is an experienced investor and your results will vary depending on risk tolerance, amount of risk capital utilized, size of trading position, willingness to follow the rules and other factors.
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