Seasoned Stocks Trade of the Week - Cardinal Health (CAH)

 Never Be On The Wrong Side Of Another Historically Repeating Market Cycle Or Trend…  Welcome to this week's Seasoned Stocks: Trade of the Week where we show you one trade you should be looking into for the week. We dive deep and take a look at how this stock has behaved historically during this time period. This is information you are going to want to read. We do this every week for you, so keep an eye out for another one next week. We do not give “specific” trading recommendations, rather “general” market information that’s purpose is to provide you an edge in your trading. Now, let’s get into today's report. Cardinal Health (CAH) has experienced a strong seasonal run since 1988. 88% of the time it has made an Average Move Up of 10% from the 4th Week of December until the 4th Week of February. Over this 2-month period it experienced a very attractive Profit Factor of 9, so for every 1 dollar in loss, it would have profited 9 dollars. See snapshot of stats below:   LIMITED TIME ONLY [CLICK HERE FOR 50% OFF SEASONED STOCKS SCANNER]( [CLICK HERE](  See snapshot below, Competitor Seasonality has had a tendency to go up during the same starting time as Cardinal Health.   See below… key in on the High Point and Low Point. The average high point is 13.62%, and the average low point is -3.91%. That’s a very attractive risk/reward volatility profile in my opinion.   Below is a chart of Cardinal Health. The stock has been in a recent uptrend over the past couple of weeks. It bounced and held at the projected road bumps (orange-colored lines) supply in early December. Price is currently resting on a weak pivot (Wp) of supply resistance (magenta-colored road bumps). Next upside levels are the ‘midpoints’ of the magenta-colored speed bump lines…first is the $53.50 area, and eventually up to $57 area. At the time of this writing Cardinal Health is trading at $49-ish per share, so an average High Point move of 13% would put the stock up into the $55 region within the next couple of months. Assume we trade at 50 or so upon entry, getting up toward the 57 dollar level is within reason with a 13% potential move in two months. My “initial” thoughts for next week, “if” I wanted to buy the stock, might be to do something like this…. - Buy CAH @ 50.07 - Stop Loss @ 48.02 — (This is a fairly tight stop, at -4% pullback) - Target 1 @ 52.12 — (1:1 initial Reward: Risk) - Target 2 @ 54.17 — (2:1 initial Reward:Risk) - Target 3 @ 56.22— (3:1 initial Reward:Risk)   LIMITED TIME ONLY [CLICK HERE FOR 50% OFF SEASONED STOCKS SCANNER]( [CLICK HERE](  A possible consideration is the following Bull Call Debit Spread (based on current market conditions, the greeks, historical volatility of the stock and my price target of 57…my software algo suggest to go out to the June expiration of next year.) Buy June 17, 2022 — 50 Strike Call, and Sell June 17, 2022 —55 Strike Call; for a debit of 1.75 or better. See Risk Graph and analysis below… One way to trade this might be to exit at a loss when you are down $75, and take profit if you get up $150. That’s “initially” an 2:1 reward to risk ratio if you do not manage the position, which is a nice starting objective. Maybe you go for -100 loss, or +200 profit initially. Maybe you hold until expiration if the stock seems strong and you want to max out the upside. There’s no “one way” to do it, this is your decision to manage the position based upon your plan and personal risk tolerance.   Here’s a straight Call purchase of a 50 Strike for June 17, 2022 expiration…if volatility remains constant and averages out where it’s at now, 2 months down the road (see where I’ve pulled in days to expiration in bottom left of image), and the stock hits 57 you might profit $425 per contract. If it’s down to 46 or so, you take a loss of 200-ish, a 2 to 1 reward to risk. This is all hypothetical forecast modeling, it’s impossible to predict the future, but this is the best we can do…again, there’s no one way to trade, just an idea.   In closing, there’s a million ways to trade, and there’s no ‘one and only’ holy-grail way to trade. The main key is to always focus on risk first. Hopefully these perspectives have proved worth your time, and you find which best fits your personal style. Ok. That’s about it, hopefully you’ve found value in the information provided. Please remember, do your homework, and fully understand the risk before trading anything. To learn more about seasonal information on Cardinal Health (CAH) and other seasonal opportunities, please click on the link below to access the Seasoned Stocks software:   LIMITED TIME ONLY [CLICK HERE FOR 50% OFF SEASONED STOCKS SCANNER]( [CLICK HERE](  Trade Smart, Chad Shirley Provided as-is for informational/educational purposes only and should not be construed as invest.ment advice . Past performance may not be not indicative of future results. Always consult your Investment Adviser before any decision. P.S. Don’t MISS OUT… if you have the Seasoned Stocks scanner, be sure to set up email (be sure to check your Spam and Promo filters) and text alerts for your upcoming Seasoned Stocks trade alerts that you enable:   [CLICK HERE FOR 50% OFF SEASONED STOCKS SCANNER]( [CLICK HERE]( Sent to: {EMAIL} [Unsubscribe]( Spyrol Group, LLC, PO Box 1510, Clearwater, Florida 33757, United States