April 27, 2020 - MDT Alert (CB)

Today, I would like to make a suggestion on a stock that is oversold and getting a bit of a bid today.

The stock is Chubb Ltd. (CB).

It is trading right around the lower band on its daily chart, which is $106.74 and as I write, CB is trading for $105.62.

I am going suggest you trade the June monthly options. And I am going to recommend a debit spread,

Here is the trade.

Buy to Open June 19th - $105.00 call @ $6.50

Sell to Open June 19th - $110.00 call @ $4.40

The net debit will be $2.10 per spread, with a maximum gain of $2.90 per spread.

Based on the nominal portfolio, limit the trade to 5 spreads or about 1% of the portfolio.

/by

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April 27, 2020 April 28, 2020 - Quote of the Day

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