The patented option trade-picking algorithms behind MarketIntelligenceCenter.com's Artificial Intelligence Center have selected a covered call trade on iShares DJ US Utilities (IDU) that includes 2.37% downside protection.
Sell one contract of the Jun. '14 $101.00 call for every 100 shares of IDU for a net debit per share of about $98.77. If IDU closes at or above $101.00 at expiration, this trade will return 2.26% or 7.23% annualized.
Support has been above $100.69 while resistance has been below $102.05. IDU closed at $101.17 after trading between $101.13 and $101.81 Wednesday.