Here is what I am looking at today. Delta Air Lines, Inc. (DAL) is starting a trend up and has the potential for a great trade. I have also included an update on a previous trade example at the bottom of this message.
Let’s take a look at DAL as an example of how options work and the advantages they offer. In this case we are going to focus on True Strength Index (TSI), a powerful indicator that generates signals that help you spot great trades. You can get a great explanation of TSI here and learn more about how to use it effectively.
You can see on the chart above that the TSI Indicator moved above 0, telling us it has bullish momentum. Whenever we are preparing to enter a trade, we look for confirmation that the move is solid and the likelihood of it continuing in the intended direction is high.
In this case, a move to $40 is the confirmation we are looking for. In this example, if that happens, we will look at a target of $43 and even higher.
Options are very effective trading tools as the offer leverage. As an example, if you bought one Call option contract covering 100 shares of DAL’s stock with a July 21st expiration date for the 43 strike, the premium would be approximately $.46 per share, or a total of $46 for the contract of 100 shares. If price rose the expected $3 over the next few weeks, the premium would likely increase approximately $1.50 to $1.96 This is a gain of 349% profit. That would be a nice trade over a short period of time!
Being thankful is one of the strongest and most transforming states of being. It shifts your perspective from lack to abundance and allows you to focus on the good in your life, which in turn pulls more blessings into your reality.
I send you wishes for the very best,
Wendy
Last week we looked at TSLA calls. On 6-6 the July 21st 230 call was $13.85. You could have sold on 6-9 for $33.90, a 145% profit.
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The Trade That Keeps On Giving
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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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