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    2024 Mar 14

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    Alejandro Mufardini
    The document provides four profit opportunities through stock and options trades in TNP, RSG, NVDA, and ELF. For each, it analyzes technical charts, recommends entry points, and calculates potential returns through options like calls and debit spreads.

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    2024 Mar 14

    Uploaded by

    Alejandro Mufardini
    4 views7 pages
    The document provides four profit opportunities through stock and options trades in TNP, RSG, NVDA, and ELF. For each, it analyzes technical charts, recommends entry points, and calculates potential returns through options like calls and debit spreads.

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    The document provides four profit opportunities through stock and options trades in TNP, RSG, NVDA, and ELF. For each, it analyzes technical charts, recommends entry points, and calculates potential returns through options like calls and debit spreads.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    4 views7 pages

    2024 Mar 14

    Uploaded by

    Alejandro Mufardini
    The document provides four profit opportunities through stock and options trades in TNP, RSG, NVDA, and ELF. For each, it analyzes technical charts, recommends entry points, and calculates potential returns through options like calls and debit spreads.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 7

    March 14th,

    2024
    Edition

    SPX Monthly Chart


    On February 29th, the
    S&P posted another
    end of the month
    close above the 10-
    month moving
    average line. This
    shows the continued
    bullish signal.
    Today will look at one
    stock purchase, a call
    purchase, and two
    option debit spreads.

    TNP
    The first profit opportunity is a stock purchase in TNP, or Tsakos Energy Navigation
    Ltd. TNP is a leading provider of international seaborne crude oil and petroleum
    product transportation services.
    TNP Monthly Chart
    WT
    On the monthly chart,
    TNP weakened a bit last
    spring. It quickly
    strengthened and
    confirmed the current
    buy signal last July.
    TNP Daily Chart

    The daily chart shows that


    TNP has been in an overall
    bull trend since the chart
    started. This month’s pause
    gives us a buying
    opportunity. The TNP
    dividend yield is 2.41%.
    We recommend buying
    TNP stock at the current
    price level.

    RSG
    The next profit opportunity we will review this week is a Call Option purchase RSG, or
    Republic Services, Inc. RSG is the second largest provider of non-hazardous solid
    waste collection, transfer, disposal, recycling, and energy services in the United States.
    RSG Monthly Chart

    The monthly chart shows


    RSG closed above the
    moving average line and
    gave us the current buy
    signal in March 2023. RSG
    has advanced from about
    135 to over 190 since we
    got the buy signal.
    The daily chart shows that RSG has been trading inside the Upper Keltner Channel or
    higher since October. The next targets are 200 and 210.

    RSG Daily Chart


    As we said above, we want
    to buy a call in RSG. We will
    first look at selecting a call
    option strike price for
    purchasing an RSG Call
    Option. RSG is currently
    trading at 186.33. Let’s look
    at buying the RSG April 19
    165-strike call. The April 19
    options expire in 35 days.

    The Call Option Purchase calculator will calculate the profit potential for a call option
    purchase trade based on the price change in the underlying stock/ETF at option
    expiration in this example from a 12.5% change in stock price to a flat stock price.
    We developed what we call the 1% Rule to help us select an option strike price. The 1%
    rule says to limit the time value portion of the option to less than 1% of the stock/ETF
    price. If you limit the time value portion of an option to 1%, the stock price only
    has to move 1% for the option contract to break even and start profiting.
    The calculator will also calculate the time value portion of an option. With this option
    purchase, the time value is 0.82 points (boxed in red). The time value of 0.82 is less
    than 1% of the 185.33 stock price, so this strike price qualifies under the 1% Rule.

    The bottom row lists the


    Buy to Open the RSG Apr 19 165-Strike Call
    percent return profit
    potential. We can see that if
    the RSG stock price
    increases 1% at option
    expiration (boxed in green)
    a 4.9% or $103 profit will
    be realized. This confirms
    the 1% Rule of at least
    breaking even or profiting
    with only a 1% increase in
    the stock price.
    There is no limit on the Buy to Open the RSG Apr 19 165-Strike Call
    profit potential of a call
    option purchase if the
    underlying stock •
    continues to increase in
    price. If RSG increases
    10% between now and
    option expiration, the Call
    Option Purchase
    Calculator shows that the
    165-strike call will realize
    an 83.7% or $1771 profit
    (boxed in green).
    On the other hand, if RSG remains flat at option expiration, the 165-Call will only lose
    -3.9% or -$82. Remember, if you purchase an at-the-money or out-of-the-money
    option and the underlying stock/ETF is flat or down at option expiration, it could
    result a 100% loss for your option trade! Using the 1% Rule to select an option strike
    price can increase your percentage of winning trades compared to trading at-the-
    money or out-of-the- money strikes and this higher accuracy can make you a more
    successful trader.
    We recommend buying the RSG Apr 19 165-Strike Call at current prices.

    NVDA
    The next profit opportunity we will review is in NVDA, or NVIDIA Corporation. NVDA
    is a worldwide leader in visual computing technologies and the inventor of the graphic
    processing unit, or GPU.

    NVDA Monthly Chart

    The monthly chart shows


    that NVDA was trading at
    about 200 when it gave us
    the current buy signal in
    January 2023. Since then,
    NVDA has gone from about
    200 to over 950!
    NVDA Daily Chart
    Some charts just make you
    say WOW! NVDA has gone
    from below 500 in January to
    975 this month. What a move
    in 2.5 months!
    We are going to review a Call
    Debit Spread trade for NVDA.
    Traders who want a more
    leveraged approach can buy
    NVDA calls.

    Buy to Open the NVDA Apr 19 790-Strike Call


    Sell to Open the NVDA Apr 19 800-Strike Call
    We can see from this
    Call Option Spread
    Analysis that if the
    NVDA stock price
    declines by -7.5%,
    remains flat, or
    increases in price
    when the options
    expire, the trade will
    make a 35.5% or $262
    profit. That’s the
    same profit with a
    7.5% swing in either
    direction!

    ELF
    The last profit opportunity we will review is in ELF, or e.l.f. Beauty, Inc. ELF is a
    cosmetic company. Its cosmetic category primarily consists of face makeup, eye
    makeup, lip products, nail products and cosmetics sets and kits.
    ELF Monthly Chart

    The monthly chart shows


    that ELF soared from
    about 20 at the May 2022
    low to about 140 at the
    August 2023 high. After a
    one month close below
    the moving average line
    last October, ELF closed
    back above the moving
    average line and triggered
    a new buy signal in
    November.
    ELF Daily Chart
    The daily chart shows that ELF
    has been mostly trading inside
    the Upper Keltner Channel
    since November. That’s an
    excellent sign of strength! The
    next targets are 225 and 235.
    We are going to review a Call
    Debit Spread trade for ELF.
    Traders who want a more
    leveraged approach can buy
    ELF calls.

    Buy to Open the ELF May 17 170-Strike Call


    Sell to Open the ELF May 17 180-Strike Call

    We can see from this Call


    Option Spread Analysis that if
    the ELF stock price declines by
    -7.5%, remains flat, or
    increases in price when the
    options expire, the spread will
    make a 40.8% or $290 profit.
    That’s the same profit with a
    7.5% swing in either direction!
    Want to Learn More from Chuck
    Hughes? Click the Banner Below

    This week we recommended the following:


    Buy TNP Stock
    Buy to Open the RSG Apr 19 165-Strike Call
    Buy to Open the NVDA Apr 19 790-Strike Call
    Sell to Open the NVDA Apr 19 800-Strike Call
    Buy to Open the ELF May 17 170-Strike Call
    Sell to Open the ELF May 17 180-Strike Call

    Note: Profit performance displayed in this newsletter does not include


    commission cost. Prices are based on Thursday End of Day.

    We’ll see you next


    week!

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