Strong Breakout for Federal Realty

Dear Reader,

On Friday, we looked at a Daily Price Chart of Hartford Financial Services Group, Inc., noting that HIG’s 50-Day EMA is trading above the 100-Day EMA.

For today’s Trade of the Day we will be looking at a Daily Price chart for Federal Realty Investment Trust stock symbol: FRT.

Before breaking down FRT’s daily price chart let’s first review which products and services are offered by the company.

Federal Realty Investment Trust is a real estate investment trust (REIT) that owns, manages, develops and redevelops premium retail and mixed-use properties in the United States. The assets community and neighborhood shopping centers and mixed-use properties are mainly concentrated over strategically-selected metropolitan markets in the Northeast and Mid-Atlantic regions of the nation, California and South Florida.

Now, let’s begin to break down the Daily Price chart for FRT. Below is a Daily Price Chart with the price line displayed by an OHLC bar.

Buy FRT Stock

The Daily Price chart above shows that FRT stock has been hitting new 52-Week Highs regularly since mid-July.

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.

You see, after a stock makes a series of two or more 52-Week Highs, the stock typically continues its price uptrend and should be purchased.

Our initial price target for FRT stock is 120.00 per share.

91.2% Profit Potential for FRT Option

Now, since FRT has been making a series of new 52-Week Highs recently and will likely rally from here, let’s use the Hughes Optioneering calculator to look at the potential returns for a FRT call option purchase.

The Call Option Calculator will calculate the profit/loss potential for a call option trade based on the price change of the underlying stock/ETF at option expiration in this example from a flat FRT price to a 12.5% increase.

The Optioneering Team uses the 1% Rule to select an option strike price with a higher percentage of winning trades. In the following FRT option example, we used the 1% Rule to select the FRT option strike price but out of fairness to our paid option service subscribers we don’t list the strike price used in the profit/loss calculation.

The goal of this example is to demonstrate the powerful profit potential available from trading options compared to stocks.

The prices and returns represented above were calculated based on the current stock and option pricing for FRT on 8/26/2024 before commissions.

For this specific call option, the calculator analysis below reveals if FRT stock increases 5.0% at option expiration to 121.77 (circled), the call option would make 42.1% before commission.

And if FRT stock increases 10.0% at option expiration to 127.57 (circled), the call option would make 91.2% before commission and outperform the stock return more than 9 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 winning trades just like this one.

Chuck’s Copilot: Did you Miss This?

Today I hosted a live session to showcase my state-of-the-art automated trade-finder, Copilot. It was a great session and if you were able to attend, we were glad to have you join us.

Great news for anyone who wasn’t able to join, we recorded today’s session to allow you to watch now that you have time to.