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Potential Marathon Petroleum (MPC) Trade Has 6.27% Downside Protection

May 16, 2018 ( via COMTEX) --

The patented option-trade picking algorithms that power's Artificial Intelligence Center are highlighting two trades on Marathon Petroleum (<a href="">MPC</a>) today after it closed at $77.29 on May 15, 2018. For more conservative investors, look at a covered call using the Jul 20, 2018 $75 call for a net debit of about $72.44. This trade will return 3.53% (19.84% annualized, for comparison purposes only) as long as the stock closes above $75 at expiration. Marathon PetroleumAcan fall 6.27% before causing a problem. For investors with a higher appetite for risk, consider a diagonal spread with a Jan 18, 2019 $57.50 call taking the place of the long stock position and the same short position in the Jul 20, 2018 $75 call. This trade only costs about $16.39 to get into and the rate of return increases to 6.70% (19.84% annualized, for comparison purposes only) but the downside protection falls to 4.38%.

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