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Potential Goldman Sachs (GS) Trade Has 2.67% Downside Protection

Nov 09, 2017 (Marketintelligencecenter.com via COMTEX) --

For a hedged play on Goldman Sachs (<a href="http://www.marketintelligencecenter.com/symbol/GS">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

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