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Potential Western Digital (WDC) Trade Has 4.93% Downside Protection

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

With bearish technical indicators and a 4 STARS (out of 5) buy ranking from Standard & PooraEUR(TM)s, Western Digital (<a href="http://www.marketintelligencecenter.com/symbol/WDC">WDC</a>) could be an attractive play for investors according to MarketIntelligenceCenter.com's patented option-trade picking algorithms. A diagonal spread pairing a long position equal numbers of contracts of the Jan 18, 2019 $32.50 call with a short position inA Mar 16, 2018 $80 calls will return up to 4.39% (52.86% annualized, for comparison purposes only). At Feb 8, 2018aEUR(TM)s closing prices, this position will cost about $45.50. A more expensive, but safer, option is a traditional covered call on Western Digital. This trade involves matching 100 shares of WDC for each sold contract of the Mar 16, 2018 $80 call. This position costs $45.50 at Feb 8, 2018aEUR(TM)s closing prices, but the stock can fall to $80 at expiration and still return a full profit of 5.06%A (52.86% annualized, for comparison purposes only), thataEUR(TM)s 4.93% downside protection, compared with only 2.60% for the diagonal spread.A

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