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

Jun 13, 2018 ( via COMTEX) --

The patented option-trade picking algorithms that power's Artificial Intelligence Center are highlighting two trades on Market Vectors Gold Miners (<a href="">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%.

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