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.

Salesforce.com Inc. (CRM) 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:

If you want to be a profit predator, this pattern is the key. See how to spot it here

This latest move is heading up to the zero-line indicating a BULLISH move. We want CCI on CRM to go UP to create a fin shape. We also want the price to go UP to at least $250 before entering a trade. The first target would be $260 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 CRM today, price would be approximately $249.94. If price moved to $260 you would make about $10.06 per share.

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 CRM’s stock with an Sept 20th expiration date for the 250 strike, premium would be approximately $15.10 today, or a total of $1510 per contract.  If the stock price ROSE the expected $10 the premium might increase approximately $5.00 to $2010 per share on your 100-share contract. This is a 33% 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

In much less time than you would spend on a side gig you can be pulling in a potential salary trading. See how to do it here

Past potential trade update:

Last week we discussed buying CAT Puts. On 8-2 the Sept 20th 330 put was $13.95. You could have sold on 8-5 for $24.75, a 77% profit.