Regeneron Continues Hitting New Highs

July 8th, 2020 Regeneron Continues Hitting New Highs Dear Reader, Yesterday, we looked at a Daily Price Chart of PayPal Holdings, Inc. noting the stock's 50-Day EMA was trading above the 100-Day EMA signaling a bullish trend. For today's Trade of the Day we will be looking at a Daily Price chart for Regeneron Pharmaceuticals, Inc. stock symbol: REGN. Before breaking down REGN's daily price chart let's first review which products and services are offered by the company. Regeneron Pharmaceuticals, Inc., a biopharmaceutical company, discovers, invents, develops, manufactures, and commercializes medicines for treating various medical conditions worldwide. The company's products include EYLEA injection to treat wet age-related macular degeneration and diabetic macular edema (DME). Now, let's begin to break down the Daily Price chart for REGN. Below is a Daily Price Chart with the price line displayed by an OHLC bar. The Daily Price chart above shows that REGN stock began reaching a series of higher highs and higher lows since late February. 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 is a good candidate for a call option debit spread. Our initial price target for REGN stock is 671.50 per share. Profit if REGN is Up, Down or Flat Now, since REGN has been making a series of higher highs and higher lows and the stock will likely rally from here, let's use the Hughes Optioneering calculator to look at the potential returns for an REGN call option spread. The Call Option Spread Calculator will calculate the profit/loss potential for a call option spread based on the price change of the underlying stock/ETF at option expiration in this example from a 7.5% increase to a 7.5% decrease in REGN at option expiration. The goal of this example is to demonstrate the 'built in' profit potential for option spreads and the ability of spreads to profit if the underlying stock is up, down or flat at option expiration. Out of fairness to our paid option service subscribers we don't list the option strike prices used in the profit/loss calculation. The prices and returns represented below were calculated based on the current stock and option pricing for REGN on 7/7/2020 before commissions. Protective Puts Can Create Powerful Spreads Learn more about this Option Secret Here 51.5% Built in Profit Potential For this option spread, the calculator analysis below reveals the cost of the spread is $330 (circled). The maximum risk for an option spread is the cost of the spread. The analysis reveals that if REGN is flat or up at all at expiration the spread will realize a 51.5% return (circled). And if REGN decreases 7.5% at option expiration, the option spread would make a 51.5% return (circled). Due to option pricing characteristics, this option spread has a 'built in' 51.5% profit potential when the trade was initiated. 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 winning trades 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, Netflix or Apple for as little as $350. With an option spread you can control 100 shares of Apple for $350. If you were to purchase 100 shares of Apple at current prices it would cost about $37,000. With the stock purchase you are risking $37,000 but with an Apple 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 Average Portfolio Return of 297.9% Below is a screenshot of the current open trade profit results from Chuck's Inner Circle Trading Service . There are currently $454,134.21 in open trade profits with an average portfolio return of 297.9% demonstrating the ability of the Optioneering Strategy to deliver substantial returns with no losing portfolios. Chuck's Elite Inner Circle Today Chuck is offering you a very special deal. As a Trade of the Day subscriber, if you sign up and become a member of The Chuck Hughes Inner Circle Trading Service today, he will give you special discount. Just call Brad at 1-866-661-5664 or 1-310-647-5664 to join and use the code "Optioneering VIP" to receive special pricing! Wishing You the Best in Investing Success, Chuck Hughes Editor, Trade of The Day Have any questions? Email us at dailytrade@chuckstod.com Join Chuck Hughes in this Free Webinar! Schedule your Webinar Now > Unsubscribe Investment Software Inc 22C New Leicester Hwy #117 © 2020 Tradewins Publishing. All rights reserved. The information provided by the newsletters, trading, training and educational products related to various markets (collectively referred to as the "Services") is not customized or personalized to any particular risk profile or tolerance. 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