Restaurant Brands International (QSR) Showing Bearish Technicals
Feb 11, 2019 (Marketintelligencecenter.com via COMTEX News Network) -- The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center Aare highlighting two trades on Restaurant Brands International (QSR) today after it closed at $62.70 on Feb 8, 2019. For more conservative investors, look at a covered call using the Apr 18, 2019 $60 call for a net debit of about $58.60. This trade will return 2.37% (13.21% annualized, for comparison purposes only) as long as the stock closes above $60 at expiration. Restaurant Brands International can fall 6.53% before causing a problem. For investors with a higher appetite for risk, consider a diagonal spread with a Jan 17, 2020 $45 call taking the place of the long stock position and the same short position in the Apr 18, 2019 $60 call. This trade only costs about $14.40 to get into and the rate of return increases to 4.16% (13.21% annualized, for comparison purposes only) but the downside protection falls to 5.25%.
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