A great potential trade opportunity just popped up and I wanted to get it to you as
quickly as possible.

Today we will be looking at a Moving Average Convergence/ Divergence (MACD) chart for Copart, Inc. (CPRT). Copart, Inc. provides online auction and a wide range of remarketing services to process and sell salvage and clean title vehicles.

MACD Indicator confirms Price Momentum

The CPRT daily price chart below shows that CPRT is in a price uptrend as the 24/52 day MACD line (black line) is above the 18-Day EMA (purple line). The Moving Average Convergence/ Divergence chart is shown below the daily price chart.

The 18-Day EMA line functions as a buy/sell ‘trigger’. When the 24/52 Day MACD line crosses above the 18-Day EMA line it indicates positive momentum and higher prices for the stock.

Buy CPRT Stock

As long as the 24/52 Day MACD line remains above the 18-Day EMA, the stock is more likely to keep trading at new highs in the coming days and weeks.

Now, since CPRT’s 24/52 Day MACD is trading above the 18-Day EMA this means the stock’s bullish rally will likely continue. Let’s use the Hughes Optioneering calculator to look at the potential returns for a CPRT call option purchase.

For this specific call option, the calculator analysis below reveals if CPRT stock increases 5.0% at option expiration to 59.75 (circled), the call option would make 50.9% before commission. 

If CPRT stock increases 10.0% at option expiration to 62.59 (circled), the call option would make 110.2% before commission and outperform the stock return more than 11 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 profit opportunities just like this one.

The prices and returns represented below were calculated based on the current stock and option pricing for CPRT on 3/20/2024 before commissions.

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.

Short-Term Program from Chuck!

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

Have any questions? Email us at dailytrade@chuckstod.com

*Trading incurs risk and some people lose money trading.