89.5% Profit Potential for A Option Now, since A stock has been hitting new 52-Week Highs and will likely rally from here, let’s use the Hughes Optioneering calculator to look at the potential returns for an A call option purchase. The Call Option Calculator will calculate the profit/loss potential for a call option trade based on the price change of the underlying stock/ETF at option expiration in this example from a flat A price to a 12.5% increase. The Optioneering Team uses the 1% Rule to select an option strike price with a higher percentage of winning trades. In the following A option example, we used the 1% Rule to select the A option strike price but out of fairness to our paid option service subscribers we don’t list the strike price used in the profit/loss calculation. The goal of this example is to demonstrate the powerful profit potential available from trading options compared to stocks. The prices and returns represented above were calculated based on the current stock and option pricing for A on 6/15/2021 before commissions. For this specific call option, the calculator analysis below reveals if A stock increases 5.0% at option expiration to 151.85 (circled), the call option would make 42.4% before commission. And if A stock increases 10.0% at option expiration to 159.08 (circled), the call option would make 89.5% before commission and outperform the stock return nearly 9 to 1. The leverage provided by call options allows you to maximize potential returns on bullish stocks. The Hughes Optioneering Team is here to help you identify winning trades just like this one.  Interested in accessing the Optioneering Calculators? Join one of Chuck's Trading Services for unlimited access! The Optioneering Team has option calculators for six different option strategies that allow you to calculate the profit potential for an option trade before you take the trade. Become a Member Today! Do you want to start receiving hand-picked trades from 10-Time Trading Champion, Chuck Hughes? As a Trade of the Day subscriber, Chuck is offering you a special discount on his Weekly Option Alert Trading Service. Just call Brad at 1-866-661-5664 or 1-310-647-5664 to join and use the code "Optioneering VIP" to receive special pricing! Wishing You the Best in Investing Success,  Chuck Hughes Editor, Trade of the Day Have any questions? Email us at dailytrade@chuckstod.com |
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