Return to News Categories

ALL NEWS SECTIONS:
MOST POPULAR SECTIONS:
Commentary and Educational Cattle - Hogs / Livestock News Currencies News Energy News Grain News Index News Interest Futures News Metals Futures News Reports: Crops, CFTC, etc Soft Commodities News

Futures and Commodity Market News

Potential Market Vectors Gold Miners (GDX) Trade Has 8.18% Downside Protection

Jun 13, 2018 (Marketintelligencecenter.com via COMTEX) --

The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center are highlighting two trades on Market Vectors Gold Miners (<a href="http://www.marketintelligencecenter.com/symbol/GDX">GDX</a>) today after it closed at $22.48 on Jun 12, 2018. For more conservative investors, look at a covered call using the Dec 21, 2018 $22 call for a net debit of about $20.64. This trade will return 6.53% (12.49% annualized, for comparison purposes only) as long as the stock closes above $22 at expiration. Market Vectors Gold MinersAcan fall 8.18% before causing a problem. For investors with a higher appetite for risk, consider a diagonal spread with a Jan 18, 2019 $20 call taking the place of the long stock position and the same short position in the Dec 21, 2018 $22 call. This trade only costs about $1.51 to get into and the rate of return increases to 32.45% (12.49% annualized, for comparison purposes only) but the downside protection falls to 4.35%.

(C) Copyright 2018, Marketintelligencecenter.com. All rights reserved.

Please read the End User Agreement.
By accessing this page, you agree to the terms and conditions of the End User Agreement.

News provided by COMTEX.

Lt Crude 69.28
Nat Gas 8.535
Corn 357 2/8
Cotton #2 85.30
Gold 1271.1
Copper 3.0270
Euro 1.17340
USD Index 94.180
SP500 E-mini 2756.50
DJIA E-mini 24599
close_icon
open_icon