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Potential Randgold Resources (GOLD) Trade Has 11.08% Downside Protection

Feb 11, 2019 ( via COMTEX) --'s patented algorithms have identified an attractive covered-call trade on Randgold Resources (<a href="">GOLD</a>). Look at the Jul 19, 2019 $13 covered call for a net debit in the $12.08 area.<br /> <br /> This trade has a duration of 158 days. The break-even point of this trade is the same as the net debit, which gives this trade 11.08% downside protection. If the stock closes at or above $13 at expiration this trade will return 7.33% or 16.96% annually (for comparison purposes only). <br /> <br /> If you're interested in a lower-cost hedged trade on Randgold Resources, consider buying the Jan 17, 2020 $8 call and selling the Jul 19, 2019 $13 call for a net debit of $4.37. A<br /> <br /> This hedged trade uses a longer-term bought call instead of the long stock position in a traditional covered call. The hedged trade lasts 158 days and would provide 9.01% downside protection. If Randgold Resources is at or above $13 when the market closes in Jul 19, 2019, this trade will make a full return of 13.89% of the initial capital at risk for an annualized return rate of 32.09% (for comparison purposes only).<br /> <br /> GOLD closed Feb 8, 2019's trading session at $13.59. In the past year, the stock has hit a 52-week low of $9.53 and 52-week high of $14.18. Randgold Resources stock has been showing support around $13.25 and resistance in the $13.91 range. Technical indicators for the stock are bearish and S&P gives GOLD 4 STARS (out of 5) buy ranking.

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