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Potential Royal Gold (RGLD) Trade Has 4.64% Downside Protection

Mar 06, 2018 ( via COMTEX) --

After Mar 5, 2018aEUR(TM)s trading in Royal Gold (<a href="">RGLD</a>)'s patented algorithms uncovered a trade that offers a 2.65% return or 21.54% on an annualized basis (for comparison purposes only), while providing 4.64% downside protection. The trade is a Apr 20, 2018 covered call at the $80 level for a net debit of about $77.93. The net debit is also the breakeven point for this trade. For a higher return, consider buying a longer-term call option, like the Jan 18, 2019 at the $37.50 level. By buying the call for $45.39 instead of paying about $81.73 for the stock, the assigned return rate for this alternate trade is 2.16%, but the stock has to finish above $79.09 when the sold call expires for this trade to be profitable. Standard & PooraEUR(TM)s has a 3 STARS (out of 5) hold ranking on Royal Gold. Technical indicators for the stock have been bearish and support and resistance have been in the area of $79.71 and $82.89, respectively.

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