Specialty Glass Co. Reaching New Highs

December 3rd, 2020 Specialty Glass Co. Reaching New Highs Dear Reader, Yesterday, we looked at a Daily Price Chart of Nike Inc. noting the stock 50-Day EMA is trading above the 100-Day EMA. For today's Trade of the Day we will be looking at a Daily Price chart for Corning, Inc. stock symbol: GLW. Before breaking down GLW's daily price chart let's first review which products and services are offered by the company. Corning Incorporated engages in display technologies, optical communications, environmental technologies, specialty materials, and life sciences businesses worldwide. The company's Life Sciences segment offers laboratory products comprising consumables, such as plastic vessels, specialty surfaces, cell culture media, and serum, as well as general labware and equipment under the Corning, Falcon, Pyrex, and Axygen brands. It also offers pharmaceutical glass tubing and packages. Now, let's begin to break down the Daily Price chart for GLW. Below is a Daily Price Chart with the price line displayed by an OHLC bar.

Buy GLW Stock The Daily Price chart above shows that GLW stock has been hitting new 52-Week Highs regularly since mid-November. Simply put, a stock does not just continually hit a series of new 52-Week Highs unless it is in a very strong bullish trend. The Hughes Optioneering team looks for stocks that are making a series of 52-Week Highs as this is a good indicator that the stock is in a powerful uptrend. You see, after a stock makes a series of two or more 52-Week Highs, the stock typically continues its price uptrend and should be purchased. Our initial price target for GLW stock is 41.30 per share.

94.4% Profit Potential for GLW Option Now, since GLW 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 GLW 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 GLW 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 GLW option example, we used the 1% Rule to select the GLW 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 GLW in-the-money option strike price, GLW 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 GLW stock is flat at 37.80 at option expiration, it will only result in a 2.6% loss for the GLW 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 will 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 GLW on 12/2/2020 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 GLW stock increases 5.0% at option expiration to 39.69 (circled), the call option would make 45.9% before commission. If GLW stock increases 10.0% at option expiration to 41.58 (circled), the call option would make 94.4% before commission and outperform the stock return more than 9 to 1. And if GLW stock increases to our initial price target of 41.30 at option expiration the call option would make 87.2% before commission. 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 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. Average Portfolio Return of 267.6% Below is a screenshot of the current open trade profit results for Chuck's Weekly Option Alert. There are currently $742,710.46 in open trade profits with an average portfolio return of 267.6% demonstrating the ability of the Optioneering Strategy to deliver substantial returns with no losing portfolios.

Start Getting Actionable Trades Today I want to start sending YOU trades! And since you are a Trade of the Day subscriber I'm giving you a special discount on my trading service. 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

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