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 (NTES) Trade Has 4.79% Downside Protection

Mar 08, 2018 ( via COMTEX) --

For a hedged play on (<a href="">NTES</a>) MarketIntelligenceCenter.comaEUR(TM)s patented trade-picking algorithms selected a Apr 20, 2018 $305 covered call for a net debit in the $291.62 area. That is also the break-even stock price for the covered call. This trade will return 4.58%, or 38.94% annualized (for comparison purposes only), in 43 days. This covered call also provides 4.79% downside protection. A lower-cost play on would use a longer term call option in place of the long position in the stock. Look at the Jan 18, 2019 $150 call and the same sold call for a net debit of $146.05.This trade only has 3.35% downside protection, but the assigned return rate rises to 6.12% or an annualized rate of 52.01% (for comparison purposes only). The current 52-week low is $253.20 and the 52-week high is $377.64. stock has been showing support around $292.85 and resistance in the $314.01 range. The stock closed Mar 7, 2018's trading session at $306.32.A

(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 62.25
Nat Gas 2.696
Corn 382 6/8
Cotton #2 82.85
Gold 1313.9
Copper 3.1125
Euro 1.22920
USD Index 90.212
SP500 E-mini 2755.50
DJIA E-mini 24965