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Potential British Pound Sterling Trust (FXB) Trade Could Hit 2.46% Return

Nov 10, 2017 ( via COMTEX) --

For a hedged play on British Pound Sterling Trust (<a href="">FXB</a>) MarketIntelligenceCenter.comaEUR(TM)s patented trade-picking algorithms selected a Jun 15, 2018 $127 covered call for a net debit in the $123.93 area. That is also the break-even stock price for the covered call. This trade will return 2.46%, or 4.15% annualized (for comparison purposes only), in 217 days. This covered call also provides 3.05% downside protection. A lower-cost play on British Pound Sterling Trust would use a longer term call option in place of the long position in the stock. Look at the Jan 18, 2019 $111 call and the same sold call for a net debit of $14.80.This trade only has 1.59% downside protection, but the assigned return rate rises to 8.10% or an annualized rate of 13.63% (for comparison purposes only). The current 52-week low is $117.48 and the 52-week high is $132.65. British Pound Sterling Trust stock has been showing support around $127.09 and resistance in the $128.37 range. The stock closed Nov 9, 2017's trading session at $127.83.A

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