Hewlett Packard Enterprise Comp (HPE) Trading Near $14.77 Resistance Level
Jan 02, 2018 (Marketintelligencecenter.com via COMTEX News Network) -- The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center are highlighting two trades on Hewlett Packard Enterprise Comp (HPE) today after it closed at $14.33 on Dec 29, 2017. For more conservative investors, look at a covered call using the Aug 17, 2018 $14 call for a net debit of about $12.92. This trade will return 8% (12.90% annualized, for comparison purposes only) as long as the stock closes above $14 at expiration. Hewlett Packard Enterprise CompAcan fall 9.74% before causing a problem. For investors with a higher appetite for risk, consider a diagonal spread with a Jan 18, 2019 $10 call taking the place of the long stock position and the same short position in the Aug 17, 2018 $14 call. This trade only costs about $3.50 to get into and the rate of return increases to 14.25% (12.90% annualized, for comparison purposes only) but the downside protection falls to 5.98%.
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