Dear Reader,

On August 16th we looked at a Moving Average Convergence/ Divergence (MACD) chart for Check Point Software Technologies, Ltd., stock symbol: CHKP.

As a reminder, Check Point Software Technologies Ltd. a well-known provider of information technology (IT) security solutions across the world. The company offers a comprehensive range of software and combined hardware and software products aimed at IT security to an operating system, a computer device, a server or a virtual desktop. 

We noted that CHKP’s 24/52 Day MACD was trading above the 18-Day EMA, so the stock was on a powerful ‘Buy’ Signal.

We decided to look at a potential call option purchase for the stock. We looked at the CHKP August 16th 2024 170-strike call which was trading at 16.15.

Fast forward to option expiration on September 20th and the stock was up 4.7%. Now, this may seem like a small move for the stock, but this was a big move for the option.

At the market close on September 20th the option was trading at 24.09. That means if we had taken the trade we would have had a $794 or 49.1% return on the option!

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.

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I call it Chuck’s Champion Trader. As I mentioned, it’s never shared it before. As a member of Trade of the Day, I’m giving you early access to become a founding member of Chuck’s Champion Trader. For more information, call my team at (866) 661-5664 or click the button below 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

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