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Potential Whiting Petroleum (WLL) Trade Has 29.25% Downside Protection

Dec 01, 2017 (Marketintelligencecenter.com via COMTEX) --

The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center are highlighting two trades on Whiting Petroleum (<a href="http://www.marketintelligencecenter.com/symbol/WLL">WLL</a>) today after it closed at $24.95 on Nov 30, 2017. For more conservative investors, look at a covered call using the Jun 15, 2018 $20 call for a net debit of about $17.64. This trade will return 13.31% (24.79% annualized, for comparison purposes only) as long as the stock closes above $20 at expiration. Whiting PetroleumAcan fall 29.25% 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 $20 call. This trade only costs about $6.44 to get into and the rate of return increases to 8.52% (24.79% annualized, for comparison purposes only) but the downside protection falls to 22.04%.

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