Apr 17, 2018 (Marketintelligencecenter.com via COMTEX) --
The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center are highlighting two trades on Ultra DJ-UBS Natural Gas Proshares (<a href="http://www.marketintelligencecenter.com/symbol/BOIL">BOIL</a>) today after it closed at $27.46 on Apr 16, 2018. For more conservative investors, look at a covered call using the Jun 15, 2018 $26 call for a net debit of about $24.91. This trade will return 4.33% (26.81% annualized, for comparison purposes only) as long as the stock closes above $26 at expiration. Ultra DJ-UBS Natural Gas ProsharesAcan fall 9.28% before causing a problem. For investors with a higher appetite for risk, consider a diagonal spread with a Jan 18, 2019 $15 call taking the place of the long stock position and the same short position in the Jun 15, 2018 $26 call. This trade only costs about $10.40 to get into and the rate of return increases to 5.76% (26.81% annualized, for comparison purposes only) but the downside protection falls to 7.53%.
(C) Copyright 2018, Marketintelligencecenter.com. All rights reserved.
