The patented option trade-picking algorithms behind MarketIntelligenceCenter.com's Artificial Intelligence Center have selected a covered call trade on Tenneco Inc (TEN) that includes 4.81% downside protection.
Sell one contract of the Apr. '15 $55.00 call for every 100 shares of TEN for a net debit per share of about $52.50. If Tenneco closes at or above $55.00 at expiration, this trade will return 4.76% or 24.14% annualized.
Support has been above $53.70 while resistance has been below $57.10. TEN closed at $55.15 after trading between $54.67 and $56.37 Tuesday.