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Potential Royal Gold (RGLD) Trade Has 3.07% Downside Protection

Sep 13, 2017 (Marketintelligencecenter.com via COMTEX) --

The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center Aare highlighting two trades on Royal Gold (<a href="http://www.marketintelligencecenter.com/symbol/RGLD">RGLD</a>) today after it closed at $92.63 on Sep 12, 2017. For more conservative investors, look at a covered call using the Oct 20, 2017 $92.50 call for a net debit of about $89.79. This trade will return 3.01% (29.77% annualized, for comparison purposes only) as long as the stock closes above $92.50 at expiration. Royal Gold can fall 3.07% before causing a problem. For investors with a higher appetite for risk, consider a diagonal spread with a Jan 18, 2019 $55 call taking the place of the long stock position and the same short position in the Oct 20, 2017 $92.50 call. This trade only costs about $36.14 to get into and the rate of return increases to 3.73% (29.77% annualized, for comparison purposes only) but the downside protection falls to 1.60%.

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