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Potential Junior Gold Miners ETF Vaneck (GDXJ) Trade Has 7.87% Downside Protection

Feb 07, 2018 (Marketintelligencecenter.com via COMTEX) --

A covered call identified by MarketIntelligenceCenter.com's patented algorithms on Junior Gold Miners ETF Vaneck (<a href="http://www.marketintelligencecenter.com/symbol/GDXJ">GDXJ</a>) could yield about 6.78% (24.76% annualized, for comparison purposes only) in 100 days. Pair a long position in the stock with the May 18, 2018 $31 call for a net debit of about $29.03. This position also has 7.87% downside protection. For a less expensive, but riskier, option consider a diagonal spread using the same sold call and a long position in the Jan 18, 2019 $24 call for a net debit of about $6.61. While this trade has a higher yield at 5.74%, the downside protection falls to 7.87%. Junior Gold Miners ETF Vaneck closed at $31.51 Feb 6, 2018. Technical indicators for GDXJ are bearish and support and resistance have been about $31 and $32.46, respectively.A

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