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Potential Marathon Petroleum (MPC) Trade Has 4.23% Downside Protection

Feb 07, 2018 (Marketintelligencecenter.com via COMTEX) --

The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center Aare highlighting two trades on Marathon Petroleum (<a href="http://www.marketintelligencecenter.com/symbol/MPC">MPC</a>) today after it closed at $65.69 on Feb 6, 2018. For more conservative investors, look at a covered call using the Mar 16, 2018 $65 call for a net debit of about $62.90. This trade will return 3.32% (32.77% annualized, for comparison purposes only) as long as the stock closes above $65 at expiration. Marathon Petroleum can fall 4.23% before causing a problem. For investors with a higher appetite for risk, consider a diagonal spread with a Jan 18, 2019 $32.50 call taking the place of the long stock position and the same short position in the Mar 16, 2018 $65 call. This trade only costs about $30.56 to get into and the rate of return increases to 6.31% (32.77% annualized, for comparison purposes only) but the downside protection falls to 3.98%.

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