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Potential Randgold Resources (GOLD) Trade Has 4.62% Downside Protection

Nov 28, 2017 ( via COMTEX) --

The patented option-trade picking algorithms that power's Artificial Intelligence Center are highlighting two trades on Randgold Resources (<a href="">GOLD</a>) today after it closed at $97.23 on Nov 27, 2017. For more conservative investors, look at a covered call using the Jan 19, 2018 $95 call for a net debit of about $92.73. This trade will return 2.44% (17.18% annualized, for comparison purposes only) as long as the stock closes above $95 at expiration. Randgold ResourcesAcan fall 4.62% before causing a problem. For investors with a higher appetite for risk, consider a diagonal spread with a Jan 18, 2019 $42.50 call taking the place of the long stock position and the same short position in the Jan 19, 2018 $95 call. This trade only costs about $51.35 to get into and the rate of return increases to 2.23% (17.18% annualized, for comparison purposes only) but the downside protection falls to 3.47%.

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