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Potential Market Vectors Gold Miners (GDX) Trade Could Hit 4.06% Return

Nov 30, 2017 ( via COMTEX) --

For a hedged play on Market Vectors Gold Miners (<a href="">GDX</a>) MarketIntelligenceCenter.comaEUR(TM)s patented trade-picking algorithms selected a Mar 16, 2018 $22 covered call for a net debit in the $21.14 area. That is also the break-even stock price for the covered call. This trade will return 4.06%, or 14% annualized (for comparison purposes only), in 106 days. This covered call also provides 6.04% downside protection. A lower-cost play on Market Vectors Gold Miners would use a longer term call option in place of the long position in the stock. Look at the Jan 18, 2019 $14 call and the same sold call for a net debit of $7.53.This trade only has 4.26% downside protection, but the assigned return rate rises to 6.10% or an annualized rate of 21% (for comparison purposes only). The current 52-week low is $18.58 and the 52-week high is $25.71. Market Vectors Gold Miners stock has been showing support around $22.28 and resistance in the $22.88 range. The stock closed Nov 29, 2017's trading session at $22.50.A

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