Return to News Categories

Commentary and Educational Cattle - Hogs / Livestock News Currencies News Energy News Grain News Index News Interest Futures News Metals Futures News Reports: Crops, CFTC, etc Soft Commodities News

Futures and Commodity Market News

Potential Whiting Petroleum (WLL) Trade Has 24.29% Downside Protection

Jan 03, 2018 ( via COMTEX) --

The patented option-trade picking algorithms that power's Artificial Intelligence Center are highlighting two trades on Whiting Petroleum (<a href="">WLL</a>) today after it closed at $27.37 on Jan 2, 2018. For more conservative investors, look at a covered call using the Jun 15, 2018 $23 call for a net debit of about $20.71. This trade will return 11% (24.64% annualized, for comparison purposes only) as long as the stock closes above $23 at expiration. Whiting PetroleumAcan fall 24.29% before causing a problem. For investors with a higher appetite for risk, consider a diagonal spread with a Jan 18, 2019 $13 call taking the place of the long stock position and the same short position in the Jun 15, 2018 $23 call. This trade only costs about $9.04 to get into and the rate of return increases to 10.49% (24.64% annualized, for comparison purposes only) but the downside protection falls to 19.43%.

(C) Copyright 2018, All rights reserved.

Please read the End User Agreement.
By accessing this page, you agree to the terms and conditions of the End User Agreement.

News provided by COMTEX.

Lt Crude 64.40
Nat Gas 3.119
Corn 347 4/8
Cotton #2 81.28
Gold 1334.9
Copper 3.1975
Euro 1.22755
USD Index 90.410
SP500 E-mini 2801.50
DJIA E-mini 26047