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Potential Gold SPDR (GLD) Trade Targets 2.33% Return

Jun 14, 2018 ( via COMTEX) --

For a hedged play on Gold SPDR (<a href="">GLD</a>) MarketIntelligenceCenter.comaEUR(TM)s patented trade-picking algorithms selected a Sep 21, 2018 $123 covered call for a net debit in the $120.18 area. That is also the break-even stock price for the covered call. This trade will return 2.33%, or 8.61% annualized (for comparison purposes only), in 99 days. This covered call also provides 2.43% downside protection. A lower-cost play on Gold SPDR would use a longer term call option in place of the long position in the stock. Look at the Jan 18, 2019 $110 call and the same sold call for a net debit of $12.25.This trade only has 0.76% downside protection, but the assigned return rate rises to 6.12% or an annualized rate of 22.57% (for comparison purposes only). The current 52-week low is $114.80 and the 52-week high is $129.51. Gold SPDR stock has been showing support around $122.13 and resistance in the $123.87 range. The stock closed Jun 13, 2018's trading session at $123.19.A

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