DailyPlay – Opening Trade (AZN) – July 1, 2024

AZN Bullish Opening Trade Signal

Investment Rationale

Having come off some positive news in their oncology and vaccine pipeline recently, AZN’s recent outperformance is worth paying attention too, especially as the technicals and fundamentals align for further potential upside.

Technical Analysis

AZN broke out from its $70 range back in April and has continued higher with strong momentum. The recent pullback to its $78 support level provides an attractive risk/reward for adding bullish exposure and seeking further upside. 

AZN – Daily

Fundamental Analysis

With expected EPS and revenue growth that is slightly higher than the average S&P 500 stock and strong margins, AZN trades at 10% discount to the average S&P 500 stock. This reflects at least a 10-15% upside in the valuation of AZN if we look at the fundamentals. With a robust drug pipeline there favorable upside potential for AZN. 

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 13 Contracts August 16th $77.5/75 Put Vertical Spreads @ $0.94 Credit per Contract.

Total Risk: This trade has a max risk of $2,028 (13 Contracts x $156) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $156 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is trading higher and is expected to continue the uptrend.

1M/6M Trends: Mildly Bearish /Bullish

Relative Strength: 9/10

OptionsPlay Score: 95

Stop Loss: @ $1.88 Debit. (100% loss to the value of premium received)

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 Friday’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