Return to News Categories

ALL NEWS SECTIONS:
MOST POPULAR SECTIONS:
Commentary and Educational Cattle - Hogs / Livestock News Currencies News Energy News Grain News Index News Interest Futures News Metals Futures News Reports: Crops, CFTC, etc Soft Commodities News

Futures and Commodity Market News

Potential Market Vectors Gold Miners (GDX) Trade Could Hit 4.36% Return

Dec 07, 2017 (Marketintelligencecenter.com via COMTEX) --

For a hedged play on Market Vectors Gold Miners (<a href="http://www.marketintelligencecenter.com/symbol/GDX">GDX</a>) MarketIntelligenceCenter.comaEUR(TM)s patented trade-picking algorithms selected a Mar 16, 2018 $21.50 covered call for a net debit in the $20.60 area. That is also the break-even stock price for the covered call. This trade will return 4.36%, or 16.10% annualized (for comparison purposes only), in 99 days. This covered call also provides 5.02% 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 $13 call and the same sold call for a net debit of $7.80.This trade only has 4.05% downside protection, but the assigned return rate rises to 8.83% or an annualized rate of 32.57% (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 $21.44 and resistance in the $22.02 range. The stock closed Dec 6, 2017's trading session at $21.69.A

(C) Copyright 2017, Marketintelligencecenter.com. All rights reserved.

Please read the End User Agreement.
By accessing this page, you agree to the terms and conditions of the End User Agreement.

News provided by COMTEX.

Lt Crude 574.20
Nat Gas 2.622
Corn 347 4/8
Cotton #2 75.92
Gold 121.9
Copper 3.1395
Euro 1.17500
USD Index 93.463
SP500 E-mini 2683.00
DJIA E-mini 24677
close_icon
open_icon