Did you see AIT tearing higher? This is a red hot alert for me and it creates a set up that offers a potentially lucrative opportunity.

Applied Industrial Technologies, Inc. (AIT) engages in the manufacture and distribution of industrial parts and products. It operates through the Service Center Based Distribution, and Fluid Power & Flow Control Business segments.

Now, take a look at the chart below.

Time to Buy?

As the chart shows, in June, the AIT 1-Month Price, crossed above the 10-Month simple moving average (SMA).

Now, as you can see, the 1-Month Price is still above the 10-Month SMA. That means the bullish trend is still in play! 

Boosting Potential Profit

Now, since AIT is on a ‘Buy’ Signal, let’s use the Hughes Optioneering calculator to look at the potential returns for a AIT call option purchase.

For this specific call option, the calculator analysis below reveals if AIT stock increases 5.0% at option expiration to 197.02 (circled), the call option would make 63.7% before commission. 

If AIT stock increases 10.0% at option expiration to 206.40 (circled), the call option would make 133.5% before commission and outperform the stock return more than 13 to 1*. 

The prices and returns represented below were calculated based on the current stock and option pricing for AIT on 2/26/2024 before commissions.

Knowing this information BEFORE you pick a trade can help you see which trades are worth it and which may not be. Our Optioneering team provides this useful tool to folks using our service. Click here to gain access to our calculators and trading insights by signing up for our Wealth Creation Alliance Trading Service.

Why I Trade Options

The leverage provided by call options allows you to maximize potential returns on bullish stocks – and my strategies allow me to minimize my risk.

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

Wishing You the Best in Investing Success,

Chuck Hughes

Editor, Trade of the Day

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*Trading incurs risk and some people lose money trading.