I’m not sure if you missed this but take a look at an example of a great potential trade I spotted.
Adobe Systems, Inc. (ADBE) just moved above 0 on the TSI Indicator. Don’t worry, I’ll walk you through what that means.
Each candle on the weekly chart represents price movement over a 5-day (week) period. The indicator at the bottom of the chart is a True Strength Indicator (TSI). To learn more about TSI, click here.
If ADBE’s price continues to move up in this example, you could consider a Call trade. If the price continues to move to $416, you could consider a call option trade. We are expecting the TSI indicator to continue to head up.
ADBE’s is bullish as the signal line moves above the 0. The short-term target is $425 and then higher.
You could use a Call option to increase the potential of this trade. Option trading offers the potential of a lower initial investment and higher percentage gain. It is like renting stock versus buying out right.
If you bought one Call option contract covering 100 shares of ADBE’s stock with a June 16th expiration date for the 425 strike, the premium would be approximately $13.85 per share, or a total of $1385 for the contract of 100 shares. If price rose the expected $9 over the next few weeks, the premium would likely increase approximately $4.50 to $1835. This is a gain of 32% profit. That would be a nice trade over a short period of time!
Learning more about trading and how to use options is one of the best investments you can make. For more examples like this one and to learn about various indicators that help increase your wins, be sure to visit our site here.
I send you wishes for the very best,
Wendy
Previous Trade:
We discussed buying GOOG 125 calls. On 5-24 the premium for the Jan 16th 125 calls was $2.51. On 5-26you could have sold for $4.07, a 62% profit.
See Related Articles on TradeWinsDaily.com
Adobe Sets Up And A 62% Example
Chart of the Day: Advanced Micro Devices (AMD) Moves
Palo Alto Networks Signals a ‘Buy’
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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.
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