Covered Call – Free Trade Idea

OPPORTUNITY

There is an attractive covered call trade in Puma Biotechnology (PBYI). Currently it is trading for $39.60.

CHARACTERISTICS

There is a 67.4% chance the stock will close above 35.50 on 04-21-2017, and you will earn your target return of $109.50. There is a 71.8% chance the stock will close above 34.36 on 04-21-2017, and you will earn a profit. There is a 0.1% chance the stock will close at or below 0.00 on 04-21-2017, and you will have a total loss of $3,435.55.

ENTRY PLAN

To enter this position you will sell 1 call options expiring on 04-21-2017 with a 35.50 strike price and buy 100 shares of stock for 39.60. This will require a net debit of $34.25. The commission for this trade will be $10.55.

DISCLAIMER

All information presented here is current as of March 24, 2017 12:55 pm (EST). All trading involves risk. Free trades ideas are presented for illustrative purposes only and are not to be construed as financial advice.


How Did We Do? The Results…

This trade employed a Covered Call strategy that needed PBYI to close above $35.50 on April 21, 2017 to earn the targeted return. PBYI closed at $37.15 which resulted in a return of $109.50.