The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center are highlighting two trades on PBF Energy Inc (PBF) today after it closed at $34.20 on Jan 10, 2019.
For more conservative investors, look at a covered call using the Feb 15, 2019 $32 call for a net debit of about $31.01. This trade will return 3.19% (33.29% annualized, for comparison purposes only) as long as the stock closes above $32 at expiration. PBF Energy Inc can fall 9.35% before causing a problem.
For investors with a higher appetite for risk, consider a diagonal spread with a Jan 17, 2020 $15 call taking the place of the long stock position and the same short position in the Feb 15, 2019 $32 call. This trade only costs about $16.25 to get into and the rate of return increases to 4.61% (33.29% annualized, for comparison purposes only) but the downside protection falls to 8.65%.