Check out the indicator I used to spot this setup... Today Iâm going to show you a stock I found using one of my favorite indicators. After showing how the indicator March 18th, 2024 âBuy Zone Alertâ: AZEK in Sweet Spot Dear Reader, Today Iâm going to show you a stock I found using one of my favorite indicators. After showing how the indicator works, Iâll even walk you through an option trade that allows me to âlock-inâ profit potential on the trade at the time of entry. For todayâs Trade of the Day we will be looking at a Keltner Channel chart for AZEK Company Inc. (AZEK). The AZEK Company Inc. engages in the design, manufacturing, and selling of building products for residential, commercial, and industrial markets in the United States and Canada. It operates through two segments: Residential and Commercial. The Residential segment designs and manufactures engineered outdoor living products, such as decking, railing, trim and molding, siding and cladding, pergolas and cabanas, and accessories. Now, letâs take a look at the Keltner Channels chart below and Iâll walk you through how they work and why I use them every day. The Hughes Optioneering Team uses the Keltner Channels as an indicator to determine whether a stock is overbought or oversold. If a stockâs daily stock price is trading above the upper Keltner Channel, this signals that the stock is temporarily overbought and subject to a retracement. The AZEK daily price chart shows that the stock is in a strong price uptrend and has become overbought several times. You can see this as AZEK has traded above the Upper Keltner Channel on multiple occasions recently. But, in every scenario when AZEK became overbought, the stock soon experienced a pullback. Finding opportunities when a stock experiences a pullback is why the Hughes Optioneering Team uses the Keltner Channels. They help us find a lower-risk entry point. The Keltner Channel âBuy Zoneâ occurs when a stock is trading below the upper Keltner Channel. Once the daily price is trading below the upper channel, it provides a lower-risk buying opportunity as the stock is likely to rally. ðUnlock the door to profit opportunities! Join my Weekly Stock and Option Alert Newsletter for exclusive trade insights. Delve into multiple trade setups every week and receive actionable trade recommendations. [Click here]( to sign up now! Profit if AZEK is Up, Down or Flat Now, since AZEK is currently trading in the Keltner Channel âBuy Zoneâ this offers a prime trade entry opportunity. Letâs use the Hughes Optioneering calculator to look at the potential returns for an AZEK call option spread. For this option spread, the calculator analysis below reveals the cost of the spread is $315 (circled). The maximum risk for an option spread is the cost of the spread. The analysis reveals that if AZEK stock is flat or up at all at expiration the spread will realize a 58.7% return (circled). And if AZEK stock decreases 7.5% at option expiration, the option spread would make a 38.5% return (circled). The prices and returns represented below were calculated based on the current stock and option pricing for AZEK on 3/18/2024 before commissions. Due to option pricing characteristics, this option spread has a âbuilt inâ 58.7% profit potential when the trade was identified*. Option spread trades can result in a higher percentage of winning trades compared to a directional option trade if you can profit when the underlying stock/ETF is up, down or flat. A higher percentage of winning trades can give you the discipline needed to become a successful trader. 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 Access Chuckâs trading wisdom through our complimentary text alerts! Enroll today to receive expert tips, live event notifications, and exclusive discounts. [Register for free!]( *Trading incurs risk and some people lose money trading.
Â
--------------------------------------------------------------- See Related Articles [How to Play the Rotation: Buy Trane?]( [JPM: Stock Roaring to New Highs!]( [Travelers Primed For Next Move Higher?]( ---------------------------------------------------------------
[TradeWins Logo](  © 2024 Tradewins Publishing. All rights reserved. | [Privacy Policy]( | [Terms and Conditions]( | [Contact Us]( If you didn't create an account using this email address, please ignore this email or unsubscribe using the link below. To ensure delivery of this email to your inbox and to enable images to load in future mailings, please add [todaystrade@chuckstod.com]( to your e-mail address book or safe senders list. DISCLAIMER: Auto-trading, or any broker or advisor-directed type of trading, is not supported or endorsed by Legacy Publishing LLC. For additional information on auto-trading, you may visit the SEC's website: All About Auto-Trading. The information provided by the Legacy Publishing LLC (âLegacyâ) Trading Services, newsletters and educational publications (âServicesâ) is not customized or personalized to any particular risk profile or tolerance. Nor is the information published by Legacy a customized or personalized recommendation to buy, sell, hold, or invest in particular financial products. Past performance is not necessarily indicative of future results. Please note that results may not be typical and can vary from person to person. There are inherent risks involved with investing in the stock and options market, including the loss of your investment. Any investment is at your own risk. You should only trade or invest your "risk capital" â money you can afford to lose. This email was sent to {EMAIL} by todaystrade@chuckstod.com TradeWins Publishing Corp.528 North Country Rd.St. James, NY 11780 [1-Click Unsubscribe]( | [Edit Profile]( | [Manage Subscriptions]( | [Report Spam](