The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center Aare highlighting two trades on Canadian Natural Resources (<a href="http://www.marketintelligencecenter.com/symbol/CNQ">CNQ</a>) today after it closed at $36.72 on Jan 11, 2018. For more conservative investors, look at a covered call using the Mar 16, 2018 $36 call for a net debit of about $34.82. This trade will return 3.35% (19.46% annualized, for comparison purposes only) as long as the stock closes above $36 at expiration. Canadian Natural Resources can fall 5.17% before causing a problem. For investors with a higher appetite for risk, consider a diagonal spread with a Jan 18, 2019 $23 call taking the place of the long stock position and the same short position in the Mar 16, 2018 $36 call. This trade only costs about $12.40 to get into and the rate of return increases to 4.83% (19.46% annualized, for comparison purposes only) but the downside protection falls to 3.62%.
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