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Canadian Natural Resources (CNQ) Trading Near $37.10 Resistance Level

Nov 08, 2017 (Marketintelligencecenter.com via COMTEX) --

MarketIntelligenceCenter.com's patented algorithms have identified an attractive covered-call trade on Canadian Natural Resources (<a href="http://www.marketintelligencecenter.com/symbol/CNQ">CNQ</a>). Look at the Dec 15, 2017 $36 covered call for a net debit in the $35.03 area.<br /> <br /> This trade has a duration of 37 days. The break-even point of this trade is the same as the net debit, which gives this trade 3.17% downside protection. If the stock closes at or above $36 at expiration this trade will return 2.76% or 27.31% annually (for comparison purposes only). <br /> <br /> If you're interested in a lower-cost hedged trade on Canadian Natural Resources, consider buying the Jan 18, 2019 $15 call and selling the Dec 15, 2017 $36 call for a net debit of $20.50. A<br /> <br /> This hedged trade uses a longer-term bought call instead of the long stock position in a traditional covered call. The hedged trade lasts 37 days and would provide 1.87% downside protection. If Canadian Natural Resources is at or above $36 when the market closes in Dec 15, 2017, this trade will make a full return of 2.43% of the initial capital at risk for an annualized return rate of 24.06% (for comparison purposes only).<br /> <br /> CNQ closed Nov 7, 2017's trading session at $36.18. In the past year, the stock has hit a 52-week low of $27.52 and 52-week high of $36.79. Canadian Natural Resources stock has been showing support around $35.56 and resistance in the $37.10 range. Technical indicators for the stock are bearish and S&P gives CNQ 5 STARS (out of 5) strong buy ranking.

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