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Potential Market Vectors Gold Miners (GDX) Trade Could Hit 5.58% Return

Nov 10, 2017 ( via COMTEX) --

The patented option-trade picking algorithms that power's Artificial Intelligence Center Aare highlighting two trades on Market Vectors Gold Miners (<a href="">GDX</a>) today after it closed at $22.80 on Nov 9, 2017. For more conservative investors, look at a covered call using the Mar 16, 2018 $22.50 call for a net debit of about $21.30. This trade will return 5.58% (16.17% annualized, for comparison purposes only) as long as the stock closes above $22.50 at expiration. Market Vectors Gold Miners can fall 6.57% before causing a problem. For investors with a higher appetite for risk, consider a diagonal spread with a Jan 18, 2019 $14 call taking the place of the long stock position and the same short position in the Mar 16, 2018 $22.50 call. This trade only costs about $7.80 to get into and the rate of return increases to 8.97% (16.17% annualized, for comparison purposes only) but the downside protection falls to 4.42%.

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