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Potential Oasis Petroleum (OAS) Trade Has 25.06% Downside Protection

Nov 10, 2017 (Marketintelligencecenter.com via COMTEX) --

For a hedged play on Oasis Petroleum (<a href="http://www.marketintelligencecenter.com/symbol/OAS">OAS</a>) MarketIntelligenceCenter.comaEUR(TM)s patented trade-picking algorithms selected a May 18, 2018 $9 covered call for a net debit in the $8.07 area. That is also the break-even stock price for the covered call. This trade will return 11.52%, or 22.25% annualized (for comparison purposes only), in 189 days. This covered call also provides 25.06% downside protection. A lower-cost play on Oasis Petroleum would use a longer term call option in place of the long position in the stock. Look at the Jan 18, 2019 $3 call and the same sold call for a net debit of $5.65.This trade only has 19.68% downside protection, but the assigned return rate rises to 6.19% or an annualized rate of 11.96% (for comparison purposes only). The current 52-week low is $6.69 and the 52-week high is $17.08. Oasis Petroleum stock has been showing support around $10.38 and resistance in the $11.42 range. The stock closed Nov 9, 2017's trading session at $10.77.A

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