Discover TNET: PowerTrend ‘Buy’ Signal

October 17th, 2023 Discover TNET: PowerTrend ‘Buy’ Signal Dear Reader, Yesterday, we looked at a Daily Price Chart of Vertex Pharmaceuticals Inc., noting that VRTX has been making a series of new 52-Week Highs. For today’s Trade of the Day e-letter we will be looking at a monthly chart for TriNet Group, Inc., stock symbol: TNET. Before breaking down TNET’s monthly chart let’s first review what products and services the company offers. TriNet Group, Inc. provides human resources (HR) consulting services, employee benefit options, payroll services, and employment risk mitigation services for small and medium size businesses in the United States. The company offers multi-state payroll processing and tax administration; employee benefits programs, including health insurance and retirement plans; workers compensation insurance and claims management; employment and benefits law compliance; and other HR related services. Now, let’s begin to break down the monthly chart for TNET stock. Below is a 10-Month Simple Moving Average chart for TriNet Group, Inc. Buy TNET Stock As the chart shows, in February, the TNET 1-Month Price, crossed above the 10-Month simple moving average (SMA). This crossover indicated the buying pressure for TNET stock exceeded the selling pressure. For this kind of crossover to occur, a stock has to be in a strong bullish uptrend. 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! As long as the 1-Month price remains above the 10-Month SMA, the stock is more likely to keep trading at new highs and should be purchased. Our initial price target for TNET is 127.50 per share. 113.7% Profit Potential for TNET Option Now, since TNET’s 1-Month Price is trading above the 10-Month SMA 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 TNET 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 TNET 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 TNET option example, we used the 1% Rule to select the TNET 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 TNET in-the-money option strike price, TNET 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 TNET stock is flat at 120.40 at option expiration, it will only result in a 1.0% loss for the TNET 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 TNET on 10/16/2023 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 TNET stock increases 5.0% at option expiration to 126.42 (circled), the call option would make 56.4% before commission. If TNET stock increases 10.0% at option expiration to 132.44 (circled), the call option would make 113.7% before commission and outperform the stock return more than 11 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. Get Trade Insights Directly From Chuck You can start getting market insights directly from 10-Time Trading Champion Chuck Hughes. See what he’s trading and when with his exclusive Weekly Option Alert Trading Service where he will send you his hand-picked stock and option trades. Just call us at 1-866-661-5664 or 1-310-647-5664 to join or click 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 *Trading incurs risk and some people lose money trading. --------------------------------------------------------------- See Related Articles [Vertex Pharma Breaking Out Higher]( [How a 10% Move Could Mean a 101.9% Return]( --------------------------------------------------------------- [TradeWins Logo]  © 2023 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. 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