Option-trade picking algorithms patented by MarketIntelligenceCenter.com found a trading opportunity with WABCO Holdings Inc. (WBC) that should provide a 3.71% return in just 100 days.
Sell one Jun. '15 call at the $110.00 level for each 100 shares of WABCO for a net debit per share of $106.07. That net debit also serves as the breakeven point for this trade, giving it 6.85% downside protection.
WBC has found support around $112.70 lately with resistance near the $115.70 level. WBC closed Tuesday at $113.87 after trading between $113.62 and $115.12. In the past year, the stock has hit a 52-week low of $85.22 and 52-week high of $120.42.