iShares MSCI Mexico Index Fund (EWW) 2/9/10 PriceWatch Alert Support Down To $45.39
Posted: Tuesday, February 09, 2010 8:34 AM EDT
By: Market Intelligence Center Staff
iShares MSCI Mexico Index Fund (PACF: EWW) closed yesterday at $45.85. So far EWW has hit a 52-week low of $21.52 and 52-week high of $51.74. EWW has been showing support around 45.39 and resistance in the 46.59 range. Technical indicators are Bearish. EWW appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Jun '10 45 covered call for a net debit in the $42.15 area. That is also the break even stock price for this trade. This covered call has a 130 day duration, provides 8.07% downside protection and a 6.76% assigned return rate for an 18.98% annualized return rate (comparison purposes only). A lower cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the EWW Jan '11 32 Call and selling the Jun '10 45 call for an $11.05 debit. The trade has a 130 day life and would provide 6.11% downside protection and a 17.65% assigned return rate for a 50.00% annualized return rate (for comparison purposes only). [ATU-Seven Summits Research]
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