Travelers (TRV) closed Jan 10, 2019 at $120.26 and technical indicators recently have been bearish. Based in part on those numbers, MarketIntelligenceCenter.com's patented algorithms have identified a couple of attractive trading opportunities in Travelers for today.
For investors looking for a high return, consider a diagonal spread pairing a long position in the Jan 17, 2020 $70 call and a short position in the Feb 15, 2019 $120 call for a net debit of about $48.35. This trade has an assigned return of 3.41% and 1.59% downside protection.
For more a more conservative play, look at a covered call using the Feb 15, 2019 $120 call for a $116.86 net debit. This trade has an assigned return of 2.67% but the downside protection increases to 2.82%.
Standard & Poor’s has a 4 STARS (out of 5) buy ranking and a 12-month target price of $142 on Travelers. Over the last 52 weeks the stock has traded between $111.08 and $150.55.