Martin Marietta Materials Inc. (MLM) traded between $144.83 and $147.57 before closing at $146.11 Monday and presents some attractive trading opportunities today according to MarketIntelligenceCenter.com's patented algorithms.
The computer program that picks trades for the Artificial Intelligence Center has highlighted a Oct. '15 $145.00 covered call for a net debit of about $137.71. That would return 5.29%, or 15.84% annualized (for comparison purposes only), in 122 days, while also providing 5.75% downside protection.
For a higher rate of return, use a long Jan. '16 $130.00 call in place of the long position in the stock. This lowers the net debit to $13.85, but also cuts the downside protection to 1.55%. With the lower net debit, the assigned return rate rises to 8.30% or 25% annualized (for comparison purposes only).
The stock has traded between $103.09 and $155.98 over the last 52 weeks. Martin Marietta Materials stock has been showing support around $143.43 and resistance in the $148.91 range. Technical indicators for the stock are neutral. Standard & Poor’s gives MLM a 4 STARS (out of 5) buy ranking and has a 12-month target price of $168.00 on MLM.