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Potential Randgold Resources (GOLD) Trade Has 3.73% Downside Protection

Nov 08, 2017 (Marketintelligencecenter.com via COMTEX) --

The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center Aare highlighting two trades on Randgold Resources (<a href="http://www.marketintelligencecenter.com/symbol/GOLD">GOLD</a>) today after it closed at $91.15 on Nov 7, 2017. For more conservative investors, look at a covered call using the Dec 15, 2017 $90 call for a net debit of about $87.75. This trade will return 2.56% (25.29% annualized, for comparison purposes only) as long as the stock closes above $90 at expiration. Randgold Resources can fall 3.73% before causing a problem. For investors with a higher appetite for risk, consider a diagonal spread with a Jan 18, 2019 $45 call taking the place of the long stock position and the same short position in the Dec 15, 2017 $90 call. This trade only costs about $43.95 to get into and the rate of return increases to 2.38% (25.29% annualized, for comparison purposes only) but the downside protection falls to 2.41%.

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