Rand gold Assets (NASDAQ: GOLD ) closed Thursday’s volatile buying and selling session at $103.59. Previously year, the stock has hit a 52-week low of $70.18 and 52-week a lot of $114.50. Rand gold Assets gold stock continues to be showing support around $100.69 and resistance within the $106.67 range. Technical indications for that stock are Bullish and S&P gives Rand gold Assets gold an optimistic 4 STARS (from 5) buy rating. For any hedged experience Rand gold Assets gold , consider the March ’11 $105.00 covered require a internet debit within the $98.59 area. That’s also the break-even stock cost with this trade. This covered call includes a amount of 50 days, provides 4.83% downside protection as well as an designated return rate of 6.50% to have an annualized return rate of 47.46% (to compare reasons only). A lesser-cost hedged play for Rand gold Assets gold would make use of a long term call option instead of the covered call stock purchase. To make use of this tactic take a look at going lengthy the Rand gold Assets gold Jan ’13 $65.00 call and selling the March ’11 $105.00 require a total debit of $38.50. The trade includes a lifespan of 50 days and provides .09% downside protection as well as an designated return rate of three.90% to have an annualized return rate of 28% (to compare reasons only). Rand gold Assets gold includes a current annual dividend yield of .17%. [FBB-Seven Summits Research]
