FirstEnergy (FE) Showing Support Near $37.61

FirstEnergy (FE) is a good candidate for a covered call at the $39 level. The Jan 18, 2019 call at that price should fetch a credit of about $1, which means the entire position has a net debit of about $38.07. This trade has 1.35% downside protection.

Another option would be to buy the FE Jan 17, 2020 $30 call instead of holding a long position in the stock. This lowers the net debit to $8.54, but the position only has 1.35% downside protection.

Technical indicators for the stock are bearish and FirstEnergy has a 52-week low of $29.33 and 52-week high of $39.38.

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