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 Southern Copper (SCCO) Trade Has 3.32% Downside Protection

Mar 16, 2017 ( via COMTEX) --

After Mar 15, 2017aEUR(TM)s trading in Southern Copper (<a href="">SCCO</a>)'s option trade-picking algorithms uncovered a trade that offers a 3.29% or 33.45% (for comparison purposes only), while providing 3.32% downside protection. The trade is a Apr 21, 2017 covered call at the $36 level for a net debit of about $34.84. The net debit is also the breakeven point for this trade. For a higher return, consider buying a longer-term call option, like the Jan 19, 2018 at the $13 level. By buying the call for $23.19 instead of paying about $36.04 for the stock, the assigned return rate for this alternate trade is 4.54%, but the stock has to finish above $35 when the sold call expires for this trade to be profitable. Technical indicators for the stock have been bearish and support and resistance have been in the area of $34.79 and $36.79, respectively.

(C) Copyright 2017, 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 47.79
Nat Gas 3.029
Corn 356 6/8
Cotton #2 77.43
Gold 1246.0
Copper 2.6520
Euro 1.08255
USD Index 99.585
SP500 E-mini 2350.50
DJIA E-mini 20672