Did you notice this stock making new highs? Let me show you my newest find.

For today’s Trade of the Day we will be looking at a Daily Price chart for American Express Co. (AXP). American Express Company is a diversified financial services company, offering charge and credit payment card products, and travel-related services worldwide. American Express and its main subsidiary, American Express Travel Related Services Company, Inc., are bank holding companies.

Take a look at the chart below.

Time to Buy?

The Daily Price chart above shows that AXP stock has been hitting new 52-Week Highs regularly this week.

Simply put, a stock does not just continually hit a series of new 52-Week Highs unless it is in a very strong bullish trend.

The Hughes Optioneering team looks for stocks that are making a series of 52-Week Highs as this is a good indicator that the stock is in a powerful uptrend.

How I Would Trade This Pick

Now, since AXP stock is currently making a series of 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 AXP call option spread.

For this option spread, the calculator analysis below reveals the cost of the spread is $658 (circled). The maximum risk for an option spread is the cost of the spread.

The analysis reveals that if AXP stock is flat, up, or down 7.5% at option expiration the spread will realize a 52.0% return (circled). 

Due to option pricing characteristics, this option spread has a ‘built in’ 52.0% profit potential when the trade was identified*.

Option spread trades can result in a higher percentage of winning trades compared to a directional option trade if you can profit when the underlying stock/ETF is up, down or flat.

A higher percentage of winning trades can give you the discipline needed to become a successful trader. 

The Hughes Optioneering Team is here to help you identify profit opportunities just like this one.

Quick, Low Cost Trades from the Champ

Chuck Hughes has just launched his exciting new trading service program, Lightning Trade Alerts. This new service focuses on low-cost & short-term options trade.

Members will receive hand-picked options trades from the 10-Time Trading Champion, Chuck Hughes.

Call our team at 1-866-661-5664 or 1-310-647-5664 to join or CLICK HERE to schedule a call! 

Wishing You the Best in Investing Success,

Chuck Hughes

Editor, Trade of the Day

Unlock Chuck’s trading wisdom through our complimentary text alerts! Enroll today to receive expert tips, live event notifications, and exclusive discounts. [Register for free!]

*Trading incurs risk and some people lose money trading.