Market Vectors Russia ETF (RSX) 3/10/10 PriceWatch Alert Bullish Price Movement
Posted: Wednesday, March 10, 2010 8:11 AM EDT
By: Market Intelligence Center Staff
Market Vectors Russia ETF (PACF: RSX) closed yesterday at $33.20. So far RSX has hit a 52-week low of $12.57 and 52-week high of $34.87. RSX has been showing support around 32.31 and resistance in the 33.81 range. Technical indicators are Bullish. RSX appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a May '10 33 covered call for a net debit in the $31.05 area. That is also the break even stock price for this trade. This covered call has a 73 day duration, provides 6.48% downside protection and a 6.28% assigned return rate for a 31.40% 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 RSX Jan '11 15 Call and selling the May '10 33 call for a $16.35 debit. The trade has a 73 day life and would provide 5.57% downside protection and a 10.09% assigned return rate for a 50.00% annualized return rate (for comparison purposes only). [WBA-Seven Summits Research]
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