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Potential Market Vectors Gold Miners (GDX) Trade Has 11.93% Downside Protection

Mar 20, 2017 (Marketintelligencecenter.com via COMTEX) --

The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center are highlighting two trades on Market Vectors Gold Miners (<a href="http://www.marketintelligencecenter.com/symbol/GDX">GDX</a>) today after it closed at $22.67 on Mar 17, 2017. For more conservative investors, look at a covered call using the Sep 15, 2017 $22 call for a net debit of about $19.96. This trade will return 10.22% (20.82% annualized, for comparison purposes only) as long as the stock closes above $22 at expiration. Market Vectors Gold MinersAcan fall 11.93% before causing a problem. For investors with a higher appetite for risk, consider a diagonal spread with a Jan 19, 2018 $16 call taking the place of the long stock position and the same short position in the Sep 15, 2017 $22 call. This trade only costs about $4.79 to get into and the rate of return increases to 25.26% (20.82% annualized, for comparison purposes only) but the downside protection falls to 8.28%.

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