The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center are highlighting two trades on Expedia (EXPE) today after it closed at $114.19 on Jan 10, 2019.
For more conservative investors, look at a covered call using the Feb 15, 2019 $110 call for a net debit of about $105.90. This trade will return 3.87% (40.37% annualized, for comparison purposes only) as long as the stock closes above $110 at expiration. Expedia can fall 7.26% before causing a problem.
For investors with a higher appetite for risk, consider a diagonal spread with a Jan 17, 2020 $55 call taking the place of the long stock position and the same short position in the Feb 15, 2019 $110 call. This trade only costs about $53.54 to get into and the rate of return increases to 2.70% (40.37% annualized, for comparison purposes only) but the downside protection falls to 4.94%.