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

Mar 20, 2017 ( via COMTEX) --

The patented option-trade picking algorithms that power's Artificial Intelligence Center are highlighting two trades on Market Vectors Gold Miners (<a href="">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%.

(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 48.14
Nat Gas 3.081
Corn 356 2/8
Cotton #2 77.47
Gold 1243.3
Copper 2.6395
Euro 1.08425
USD Index 99.442
SP500 E-mini 2342.75
DJIA E-mini 20575