Drug-Maker Reaching New Highs

October 1st, 2020 Drug-Maker Reaching New Highs Dear Reader, Yesterday, we looked at a Daily Price Chart of Bandwidth, Inc. noting that the stock's 12/26 Day MACD is trading above the 9-Day EMA. For today's Trade of the Day we will be looking at a Daily Price chart for Kura Oncology, Inc. stock symbol: KURA. Before breaking down KURA's daily price chart let's first review which products and services are offered by the company. Kura Oncology, Inc., a clinical-stage biopharmaceutical company, develops medicines for the treatment of cancer. Its pipeline consists of small molecule product candidates that target cancer. The company's lead product candidate is Tipifarnib, an orally bioavailable inhibitor of farnesyl transferase that is in Phase II clinical trials. Now, let's begin to break down the Daily Price chart for KURA. Below is a Daily Price Chart with the price line displayed by an OHLC bar. The Daily Price chart above shows that KURA stock has been hitting new 52-Week Highs regularly since late May. 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 is a good candidate for a covered call. Our initial price target for KURA stock is 38.25 per share. Profit if KURA Is Down 10% Now, since KURA has recently been making a series of 52-Week Highs and will likely rally from here, let's use the Optioneering calculator to look at the potential returns for a KURA covered call trade. Covered calls are also known as buy writes. 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 KURA 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 KURA on 9/30/2020 before commissions. Chuck's Free Beginners Guide to Options Interested in trading options, but don't know where to start? The Hughes Optioneering Team is here to help you. Grab Chuck's FREE Beginners Guide to Stunning Profits. The 10-Time Trading Champion will teach you the basics of options trading plus his insider tips. CLICK HERE to get your free guide now. Built in Profit Potential For this covered call, the calculator analysis below reveals the cost or the breakeven price is $2,259 (circled). The maximum risk for a covered call is the cost of the covered call. The analysis reveals that if KURA is flat at 30.64 or up at all at expiration the covered call will realize a $741.00 profit and a 32.8% return (circled). If KURA decreases 5.0% at option expiration, the covered call will realize a $651.80 profit and a 28.9% return. And if KURA decreases 10% at option expiration, the covered call will realize a $498.60 profit and a 22.1% return. Due to option pricing characteristics, this covered call has a 'built in' 32.8% 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. Average Portfolio Return of 193.7% Below is a screenshot of the current open trade profit results from Chuck's Inner Circle Trading Service . There are currently $585,000.41 in open trade profits with an average portfolio return of 193.7% demonstrating the ability of the Optioneering Strategy to deliver substantial returns with no losing portfolios. Get Chuck's Trades Sent to Your Inbox 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's Weekly Optioneering Newsletter! 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. 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. _