Chart of the Day

Did you see TXT break through its 52-week high? This is a red hot alert for me and creates a set up that offers a lucra

March 8^th, 2024

How to Play TXT’s Recent Breakout

Did you see TXT break through its 52-week high? This is a red hot alert for me and creates a set up that offers a lucrative opportunity.

Textron, Inc. (TXT) is a global multi-industry company that manufactures aircraft, automotive engine components and industrial tools. It also offers solutions and services for aircraft, fastening systems, and industrial products and components.

Now, let’s begin to break down the Daily Price chart for TXT shown below.

Buy TXT Stock

The Daily Price chart above shows that TXT stock has been hitting new 52-Week Highs regularly over the past week.

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.

Now, since TXT is currently making a series of new 52-Week Highs and will likely rally from here, let’s use the Hughes Optioneering calculator to look at the potential returns for a TXT call option spread.

The prices and returns represented below were calculated based on the current stock and option pricing for TXT on 3/7/2024 before commissions.

The analysis reveals that if TXT stock is flat or up at all at expiration the spread will realize a 69.5% return (circled).

And if TXT stock decreases 7.5% at option expiration, the option spread would make a 69.5% return (circled).

Due to option pricing characteristics, this option spread has a ‘built in’ 69.5% profit potential when the trade was identified*.

🔑Unlock 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!

Why I Trade Option Spreads

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. Stay posted for our next hot find!

Wishing You the Best in Investing Success,

Chuck Hughes

Editor, Trade of the Day

Access Chuck’s 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.

See Related Articles

Time to Buy IR? Let’s Check the Charts

KLAC’s Technicals Confirm Strong ‘Buy’ Alert

Momentum Boosts Wells Fargo Higher

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 (“Legacy”) Trading Services, newsletters and educational publications (“Services”) 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" – money you can afford to lose.