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Potential Netease.com (NTES) Trade Has 5.73% Downside Protection

Feb 09, 2018 (Marketintelligencecenter.com via COMTEX) --

For a hedged play on Netease.com (<a href="http://www.marketintelligencecenter.com/symbol/NTES">NTES</a>) MarketIntelligenceCenter.comaEUR(TM)s patented trade-picking algorithms selected a Mar 16, 2018 $285 covered call for a net debit in the $273 area. That is also the break-even stock price for the covered call. This trade will return 4.39%, or 45.79% annualized (for comparison purposes only), in 35 days. This covered call also provides 5.73% downside protection. A lower-cost play on Netease.com would use a longer term call option in place of the long position in the stock. Look at the Jan 18, 2019 $115 call and the same sold call for a net debit of $161.65.This trade only has 4.47% downside protection, but the assigned return rate rises to 5.16% or an annualized rate of 53.86% (for comparison purposes only). The current 52-week low is $252.54 and the 52-week high is $377.64. Netease.com stock has been showing support around $272.31 and resistance in the $323.65 range. The stock closed Feb 8, 2018's trading session at $289.60.A

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