DailyPlay – Opening Trade (AZN) – November 20, 2024

AZN Bullish Opening Trade Signal

Investment Rationale

AstraZeneca PLC (AZN) is oversold on daily and weekly timeframes, signaling exhaustion and potential for a rally.

With strong EPS growth (34.56%) and net margins (12.7%), AZN trades at an 8% discount to peers, suggesting upside potential.

AZN – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spreads

Direction: Bullish Debit Spread

Details: Buy to Open 8 AZN Dec 20 $62/$69 Call Vertical Spreads @ $2.71 Debit per Contract.

Total Risk: This trade has a max risk of $2,168 (8 Contract x $271) based on a hypothetical $100,000 portfolio normally risking 2%. We suggest using 2% of your portfolio value and divide it by $271 to select the # contracts for your portfolio.

Counter Trend Signal: This is a bullish trade on a stock that is expected to bounce off recent support as it formed a bullish divergence.

1M/6M Trends: Bearish/Bearish

Relative Strength: 2/10

OptionsPlay Score: 106

Stop Loss: @ $1.36 (50% loss of premium paid)

View AZN Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Tuesday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View AZN Trade