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Potential Anadarko Petroleum (APC) Trade Has 4.62% Downside Protection

Jun 14, 2018 (Marketintelligencecenter.com via COMTEX) --

With bearish technical indicators and a 3 STARS (out of 5) hold ranking from Standard & PooraEUR(TM)s, Anadarko Petroleum (<a href="http://www.marketintelligencecenter.com/symbol/APC">APC</a>) could be an attractive play for investors according to MarketIntelligenceCenter.com's patented option-trade picking algorithms. A diagonal spread pairing a long position equal numbers of contracts of the Jan 18, 2019 $47.50 call with a short position inA Jul 20, 2018 $70 calls will return up to 4.40% (30.12% annualized, for comparison purposes only). At Jun 13, 2018aEUR(TM)s closing prices, this position will cost about $21.55. A more expensive, but safer, option is a traditional covered call on Anadarko Petroleum. This trade involves matching 100 shares of APC for each sold contract of the Jul 20, 2018 $70 call. This position costs $21.55 at Jun 13, 2018aEUR(TM)s closing prices, but the stock can fall to $70 at expiration and still return a full profit of 2.97%A (30.12% annualized, for comparison purposes only), thataEUR(TM)s 4.62% downside protection, compared with only 3.12% for the diagonal spread.A

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