Trade of the Day: Hess Corp. (NYSE:HES)

Advertisement

To receive further updates on this Hess Corp. (NYSE:HES) trade, sign up for a risk-free trial of Maximum Options today.

Stocks have been trading within a narrow sideways range since last Thursday’s record closing high.

Telecom was the best-performing sector of Tuesday’s post-holiday session by far, with a gain of 1.4%, while utilities and technology each gained about 0.3%. On the other hand, energy companies have taken a hit following last week’s OPEC meeting.

Let’s take advantage of that to collect some option premium with a naked put write on Hess Corp. (NYSE:HES).

Sell to open the HES June 23rd $42 put at about $0.35.

Note: There are several June expirations available for HES options. Be sure you are opening the weekly options that expire on Friday, June 23, 2017.

A naked put write is a bullish position in that, as the shares continue to trade above your strike price, the value of the puts gradually waste away to zero. If you are holding the option at expiration and the stock is trading below the $42 strike price, you will be put the shares. But, with HES at about $46, the more likely scenario is that ultimately we will walk away with 100% of the put premium we collect upfront.

Follow our Facebook page to receive each Trade of the Day direct to your News Feed.

Ken Trester is editor of the popular Maximum Options program. Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990.


Article printed from InvestorPlace Media, https://investorplace.com/2017/05/trade-of-the-day-hess-corp-nyse-hes/.

©2024 InvestorPlace Media, LLC