TTE Breaks Through: Strong ‘Buy’

Dear Reader,

Yesterday, we looked at a Daily Price chart of Logitech International S.A., noting that LOGI’s 24/52 Day MACD is trading above the 18-Day EMA signaling a ‘Buy’.

For today’s Trade of the Day we will be looking at a Daily Price chart for TotalEnergies SE, stock symbol: TTE.

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

TotalEnergies SE is among the top five publicly traded global integrated oil and gas companies based on production volumes, proved reserves and market capitalization. The company has operations in countries across five continents. The company’s operations are divided into five main segments: Exploration & Production; Integrated Gas, Renewables & Power, Refining & Chemicals, & Marketing & Services.

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

Buy TTE Stock

The Daily Price chart above shows that TTE stock began reaching a series of higher highs and higher lows since mid-October.

This pattern of bullish trading suggests the stock will march on to a further advance.

You see, after a stock makes a series of two or more higher highs and higher lows, the stock typically continues its price up trend and should be purchased.

Our initial price target for TTE stock is 74.25 per share.

106.4% Profit Potential for TTE Option

Now, since TTE stock is currently making a series of higher highs and higher lows 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 TTE 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 TTE 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 TTE option example, we used the 1% Rule to select the TTE 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.

Trade with Higher Accuracy

When you use the 1% Rule to select a TTE in-the-money option strike price, TTE stock only has to increase 1% for the option to breakeven and start profiting! Remember, if you purchase an at-the-money or out-of-the-money call option and the underlying stock closes flat at option expiration it will result in a 100% loss for your option trade! In this example, if TTE stock is flat at 68.64 at option expiration, it will only result in a 2.5% loss for the TTE option compared to a 100% loss for an at-the-money or out-of-the-money call option.

Using the 1% Rule to select an option strike price can result in a higher percentage of winning trades compared to at-the-money or out-of-the-money call options. This higher accuracy can give you the discipline needed to become a successful option trader and can help avoid 100% losses when trading options.

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

The prices and returns represented below were calculated based on the current stock and option pricing for TTE on 11/2/2023 before commissions.

When you purchase a call option, there is no limit on the profit potential of the call if the underlying stock continues to move up in price.

For this specific call option, the calculator analysis below reveals if TTE stock increases 5.0% at option expiration to 72.07 (circled), the call option would make 51.9% before commission.

If TTE stock increases 10.0% at option expiration to 75.50 (circled), the call option would make 106.4% before commission and outperform the stock return more than 10 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.

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.

Trade High Priced Stocks for $350 With Less Risk

One of the big advantages to trading option spreads is that spreads allow you to trade high price stocks like Amazon, Google, or Netflix for as little as $350. With an option spread you can control 100 shares of Netflix for $350. If you were to purchase 100 shares of Netflix at current prices it would cost about $43,000. With the stock purchase you are risking $43,000 but with a Netflix option spread that costs $350 your maximum risk is $350 so your dollar risk is lower with option spreads compared to stock purchases.

Chuck’s Lightning Trade Alerts

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,