APPS Stock on Sustain 'Buy' Signal

Oct. 14th, 2020 APPS Stock on Sustain 'Buy' Signal Dear Reader, Yesterday, we looked at Daily Price Chart for Dell Technologies, Inc. noting that the stock had been making a series of higher highs and higher lows. For today's Trade of the Day e-letter we will be looking at a daily price chart for Digital Turbine, Inc. stock symbol: APPS. Before breaking down APPS's daily chart let's first review what products and services the company offers. Digital Turbine, Inc., through its subsidiaries, provides media and mobile communication products and solutions for mobile operators, application advertisers, device original equipment manufacturers, and other third parties worldwide. Its software platform that enables mobile operators and OEMs to control, manage, and monetize devices. The company also provides programmatic advertising and targeted media delivery services; and other products and professional services directly related to the core platform. Now, let's begin to break down the Daily Price chart for APPS stock. Below is a Daily Price chart with the 50-Day EMA and 100-Day EMA for APPS.

50-Day EMA and 100-Day EMA 'Buy' Signal The 50-Day Exponential Moving Average (EMA) and 100-Day EMA are moving average indicator lines that can provide buy and sell signals when used together. When the shorter-term 50-Day EMA crosses above or below the longer-term 100-Day EMA, this provides either a buy or sell signal depending on which direction the stock price is moving. -50-Day EMA line Above 100-Day EMA = Price Uptrend = Buy signal -50 Day EMA line Below 100-Day EMA = Price Downtrend = Sell signal When the 50-Day EMA (blue line) crosses above the 100-Day EMA (red line) this indicates that the stock's buying pressure has begun to outweigh the selling pressure signaling a 'buy' signal. When the 50-Day EMA crosses below the 100-Day EMA this indicates that the selling pressure has begun to outweigh the buying pressure signaling a 'sell' signal. APPS Stock on a 'Buy Signal' As the chart shows, on June 4th, the APPS 50-Day EMA, crossed above the 100-Day EMA. This crossover indicated the buying pressure for APPS stock exceeded the selling pressure. For this kind of crossover to occur, a stock has to be in a strong bullish trend. Now, as you can see, the 50-Day EMA is still above the 100-Day EMA meaning the 'buy' signal is still in play. As long as the 50-Day EMA remains above the 100-Day EMA, the stock is more likely to keep trading at new highs in the coming days and weeks and the stock should be bought. Our initial price target for APPS is 55.85 per share.

Profit if APPS Is Down 10% With APPS' 50-Day EMA above the 100-Day EMA, the most likely future price movement for APPS stock is up making APPS a good candidate for a covered call. The Buy Write Calculator will calculate the profit/loss potential for a covered call trade based on the price change of the underlying stock/ETF at option expiration in this example from a 10% increase to a 10% decrease in APPS stock at option expiration. The goal of this example is to demonstrate the 'built in' profit potential for covered calls and the ability of covered calls 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 price used in the profit/loss calculation. The prices and returns represented below were calculated based on the current stock and option pricing for APPS on 10/13/2020 before commissions. Built in Profit Potential For this covered call, the calculator analysis below reveals the cost or the breakeven price is $2,963 (circled). The maximum risk for a covered call is the cost of the covered call. The analysis reveals that if APPS is flat at 39.83 at expiration the covered call will realize a $1,020.00 profit and a 34.4% return (circled). If APPS increases 10.0% at option expiration, the covered call will realize a $1,037.00 profit and a 35.0% return. And if APPS decreases 10% at option expiration, the covered call will realize a $621.70 profit and a 21.0% return. Due to option pricing characteristics, this covered call has a 'built in' 34.4% profit potential when the trade was initiated. Covered call trades can result in a higher percentage of winning trades compared to a directional stock 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 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 Like Chuck Today! You can start receiving hand-picked trades from Chuck today! Chuck is offering special pricing for his Inner Circle Trading Service for Trade of the Day subscribers. 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

http://na.tradewins.com/u?id=41020330.0949180a6b5a023cfda55ed21dfef3b2&n=T&l=tod&o=1760110 © 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. Nor is the information published by Legacy Publishing, LLC ("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. Trading and investing involve substantial risk and is not appropriate for everyone. The actual profit results presented here may vary with the actual profit results presented in other Legacy Publishing LLC publications due to the different strategies and time frames presented in other publications. Trading on margin carries a high level of risk and may not be suitable for all investors. Other than the refund policy detailed elsewhere, Legacy does not make any guarantee or other promise as to any results that may be obtained from using the Services. Legacy disclaims any and all liability for any investment or trading loss sustained by a subscriber. You should trade or invest only "risk capital" - money you can afford to lose. Trading stocks and stock options involves high risk and you can lose the entire principal amount invested or more. There is no guarantee that systems, indicators, or trading signals will result in profits or that they will not produce losses. Some profit examples are based on hypothetical or simulated trading. This means the trades are not actual trades and instead are hypothetical trades based on real market prices at the time the recommendation is disseminated. No actual money is invested, nor are any trades executed. Hypothetical or simulated performance is not necessarily indicative of future results. Hypothetical performance results have many inherent limitations, some of which are described below. Also, the hypothetical results do not include the costs of subscriptions, commissions, or other fees. Because the trades underlying these examples have not actually been executed, the results may understate or overstate the impact of certain market factors, such as lack of liquidity. Legacy makes no representations or warranties that any account will or is likely to achieve profits similar to those shown. No representation is being made that you will achieve profits or the same results as any person providing a testimonial. No representation is being made that any person providing a testimonial is likely to continue to experience profitable trading after the date on which the testimonial was provided, and in fact the person providing the testimonial may have subsequently experienced losses. The cost basis for some of the options in a portfolio may be reduced by rolling over profits at option expiration which is one of the Hughes Optioneering Trade Management Rules. Some income figures presented represent the total amount of option premium collected during the referenced period. Actual profits were less. Open trade profit results may have increased or decreased when the trades were closed out. Chuck Hughes' experiences are not typical. Chuck Hughes is an experienced investor and your results will vary depending on risk tolerance, amount of risk capital utilized, size of trading position, willingness to follow the rules and other factors.

You are currently subscribed to tod as: phanhoa1821960.trader@blogger.com. Add todaystrade@chuckstod.com to your email address book to ensure delivery. Forward to a Friend | Manage Subscription | Subscribe | Unsubscribe | Snooze