Hewlett Packard Enterprise Comp (HPE) Trading Near $13.91 Support Level
Dec 06, 2017 (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 $14.07 on Dec 5, 2017. For more conservative investors, look at a covered call using the May 18, 2018 $14 call for a net debit of about $13.13. This trade will return 6.62% (14.83% annualized, for comparison purposes only) as long as the stock closes above $14 at expiration. Hewlett Packard Enterprise CompAcan fall 6.74% before causing a problem. For investors with a higher appetite for risk, consider a diagonal spread with a Jan 18, 2019 $8 call taking the place of the long stock position and the same short position in the May 18, 2018 $14 call. This trade only costs about $5.29 to get into and the rate of return increases to 13.20% (14.83% annualized, for comparison purposes only) but the downside protection falls to 5.53%.
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