Children's Place: Highest Returning Protected Covered Call For This Value Company
By PowerOptions:We searched for a protected covered call or collar using PowerOptions tools, seeking to find the highest returning positions for profitable value companies with a maximum potential loss of 8% and a stock price in an uptrend. The search produced children's clothing retailer Children's Place Retail Stores (PLCE), as shown below:
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Following not too far behind Children's Place were the petroleum refining company Valero (VLO), the retailer Dillards (DDS), the petroleum refining and marketing company Tesoro (TSO) and auto manufacturer General Motors (GM).A protected covered call may be entered by selling a call option against a purchased or existing stock and using some of the proceeds from selling the call option to purchase a put option for protection. The Children's Place protected covered call has a potential return of 2.7% (66% annualized) and a maximum potential loss of 7.9%. The maximum the protected covered call canComplete Story »
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