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Potential Pioneer Natural Resources (PXD) Trade Has 3.90% Downside Protection

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

The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center Aare highlighting two trades on Pioneer Natural Resources (<a href="http://www.marketintelligencecenter.com/symbol/PXD">PXD</a>) today after it closed at $161.13 on Nov 9, 2017. For more conservative investors, look at a covered call using the Dec 15, 2017 $160 call for a net debit of about $154.83. This trade will return 3.33% (34.75% annualized, for comparison purposes only) as long as the stock closes above $160 at expiration. Pioneer Natural Resources can fall 3.90% before causing a problem. For investors with a higher appetite for risk, consider a diagonal spread with a Jan 18, 2019 $70 call taking the place of the long stock position and the same short position in the Dec 15, 2017 $160 call. This trade only costs about $87.75 to get into and the rate of return increases to 2.56% (34.75% annualized, for comparison purposes only) but the downside protection falls to 2.10%.

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