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Potential Junior Gold Miners ETF Vaneck (GDXJ) Trade Could Hit 7.81% Return

May 19, 2017 ( via COMTEX) --

After May 18, 2017aEUR(TM)s trading in Junior Gold Miners ETF Vaneck (<a href="">GDXJ</a>)'s option trade-picking algorithms uncovered a trade that offers a 7.81% or 31.35% (for comparison purposes only), while providing 8.87% downside protection. The trade is a Aug 18, 2017 covered call at the $32 level for a net debit of about $29.67. The net debit is also the breakeven point for this trade. For a higher return, consider buying a longer-term call option, like the Jan 19, 2018 at the $23 level. By buying the call for $10.55 instead of paying about $32.56 for the stock, the assigned return rate for this alternate trade is 17.49%, but the stock has to finish above $30.66 when the sold call expires for this trade to be profitable. Technical indicators for the stock have been bearish and support and resistance have been in the area of $31.81 and $33.87, respectively.

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