RNF, closed at $14.94, has been trading above 200 SMA; MACD is neutral, RSI is neutral to slightly high at 59%. Six analysts give a rating of hold and 1 buy with an average price target of $16.88. The price pattern currently is trading at a very tight range, with a coiled spring pattern. It may break above $15 or down to $13.
Dividends: Dividend yield: 9.7%.
A covered call with an ATM strike of $15 will provide 97% annualized ROI.
RNF looks quite impressive and I placed an order to buy RNF and sell RNF Jun 2015 $15 call for a debit of $14.4. One downside is the option volume is on the low side.
About admin
Richard Cheng, M.D., Ph.D., is an avid Wall Street investor with 20+ years of investing experience. He is specially adept at observing the world to find the patterns and then design strategies to win his battle. Most, if not all, happenings in the world, follow certain patterns. These patterns may be complex, multi-factorial, not so intuitive at the first glance, or even may appear chaotic. However, even chaos has its own patterns. If you pay attention and be patient, you'll find them and then you will gain an upper hand in your battle. Using this blog space, he documents his trades and his thoughts as they happen. He uses this blog as a a notebook to help him better refine his strategies. Hopefully this will help you as well. Good luck in your trading.
