Return to News Categories

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 Goldman Sachs (GS) Trade Has 2.67% Downside Protection

Nov 09, 2017 ( via COMTEX) --

For a hedged play on Goldman Sachs (<a href="">GS</a>) MarketIntelligenceCenter.comaEUR(TM)s patented trade-picking algorithms selected a Dec 15, 2017 $240 covered call for a net debit in the $234.80 area. That is also the break-even stock price for the covered call. This trade will return 2.21%, or 22.45% annualized (for comparison purposes only), in 36 days. This covered call also provides 2.67% downside protection. A lower-cost play on Goldman Sachs would use a longer term call option in place of the long position in the stock. Look at the Jan 18, 2019 $110 call and the same sold call for a net debit of $125.54.This trade only has 2.36% downside protection, but the assigned return rate rises to 3.54% or an annualized rate of 35.93% (for comparison purposes only). The current 52-week low is $183.45 and the 52-week high is $255.15. Goldman Sachs stock has been showing support around $235.60 and resistance in the $245.14 range. The stock closed Nov 8, 2017's trading session at $241.25.A

(C) Copyright 2017, 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 56.76
Nat Gas 3.030
Corn 343 4/8
Cotton #2 70.65
Gold 1283.0
Copper 3.1255
Euro 1.17550
USD Index 93.880
SP500 E-mini 2598.00
DJIA E-mini 23577