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Potential Hewlett Packard Enterprise Comp (HPE) Trade Has 10.74% Downside Protection

Dec 29, 2017

Potential Hewlett Packard Enterprise Comp (HPE) Trade Has 10.74% Downside Protection

Dec 29, 2017 (Marketintelligencecenter.com via COMTEX News Network) -- For a hedged play on Hewlett Packard Enterprise Comp (HPE) MarketIntelligenceCenter.comaEUR(TM)s patented trade-picking algorithms selected a Aug 17, 2018 $14 covered call for a net debit in the $13.03 area. That is also the break-even stock price for the covered call. This trade will return 7.36%, or 11.63% annualized (for comparison purposes only), in 231 days. This covered call also provides 10.74% downside protection. A lower-cost play on Hewlett Packard Enterprise Comp would use a longer term call option in place of the long position in the stock. Look at the Jan 18, 2019 $10 call and the same sold call for a net debit of $3.43.This trade only has 8.07% downside protection, but the assigned return rate rises to 16.61% or an annualized rate of 26.25% (for comparison purposes only). The current 52-week low is $12.81 and the 52-week high is $24.88. Hewlett Packard Enterprise Comp stock has been showing support around $14.48 and resistance in the $14.77 range. The stock closed Dec 28, 2017's trading session at $14.60.A

(C) Copyright 2017, Marketintelligencecenter.com. All rights reserved.

SOURCE: Comtex

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