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Potential British Pound Sterling Trust (FXB) Trade Could Hit 2.35% Return

Dec 01, 2017 (Marketintelligencecenter.com via COMTEX) --

After Nov 30, 2017aEUR(TM)s trading in British Pound Sterling Trust (<a href="http://www.marketintelligencecenter.com/symbol/FXB">FXB</a>) MarketIntelligenceCenter.com's option trade-picking algorithms uncovered a trade that offers a 2.35% or 4.39% (for comparison purposes only), while providing 2.66% downside protection. The trade is a Jun 15, 2018 covered call at the $131 level for a net debit of about $127.97. 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 $114 level. By buying the call for $19.19 instead of paying about $131.47 for the stock, the assigned return rate for this alternate trade is 8.28%, but the stock has to finish above $129.69 when the sold call expires for this trade to be profitable. Technical indicators for the stock have been bearish and support and resistance have been in the area of $130.60 and $132.16, respectively.

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