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Potential DJ-UBS Coffee TR Sub-Idx ETN Ipath (JO) Trade Targets 7.67% Return

Dec 04, 2017 ( via COMTEX) --

The patented option-trade picking algorithms that power's Artificial Intelligence Center Aare highlighting two trades on DJ-UBS Coffee TR Sub-Idx ETN Ipath (<a href="">JO</a>) today after it closed at $16.30 on Dec 1, 2017. For more conservative investors, look at a covered call using the Jun 15, 2018 $16 call for a net debit of about $14.83. This trade will return 7.67% (14.50% annualized, for comparison purposes only) as long as the stock closes above $16 at expiration. DJ-UBS Coffee TR Sub-Idx ETN Ipath can fall 8.89% before causing a problem. For investors with a higher appetite for risk, consider a diagonal spread with a Jan 18, 2019 $12 call taking the place of the long stock position and the same short position in the Jun 15, 2018 $16 call. This trade only costs about $3.64 to get into and the rate of return increases to 9.58% (14.50% annualized, for comparison purposes only) but the downside protection falls to 4.04%.

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