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Potential DJ-UBS Coffee TR Sub-Idx ETN Ipath (JO) Trade Has 8.51% Downside Protection

Feb 14, 2018 ( via COMTEX) --

For a hedged play on DJ-UBS Coffee TR Sub-Idx ETN Ipath (<a href="">JO</a>) MarketIntelligenceCenter.comaEUR(TM)s patented trade-picking algorithms selected a Sep 21, 2018 $15 covered call for a net debit in the $13.96 area. That is also the break-even stock price for the covered call. This trade will return 7.37%, or 12.28% annualized (for comparison purposes only), in 219 days. This covered call also provides 8.51% downside protection. A lower-cost play on DJ-UBS Coffee TR Sub-Idx ETN Ipath would use a longer term call option in place of the long position in the stock. Look at the Jan 18, 2019 $11 call and the same sold call for a net debit of $3.40.This trade only has 5.69% downside protection, but the assigned return rate rises to 17.64% or an annualized rate of 29.41% (for comparison purposes only). The current 52-week low is $14.65 and the 52-week high is $21.64. DJ-UBS Coffee TR Sub-Idx ETN Ipath stock has been showing support around $14.88 and resistance in the $15.52 range. The stock closed Feb 13, 2018's trading session at $15.27.A

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