iShares S&P Global Telecommunications Sector Index Fund (PCX: IXP) Hedged Price Watch Alert

Posted on Thursday, June 05, 2008 8:07 AM

iShares S&P Global Telecommunications Sector Index Fund (PCX: IXP) closed yesterday at $69.54. So far IXP has hit a 52-week low of $63.50 and 52-week high of $83.13. IXP has been showing support around 68.76 and resistance in the 70.28 range. Technical indicators are Bearish. IXP appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Sep '08 70 covered call (IXP IN) for a net debit in the $67.79 area. That is also the break even stock price for this trade. This covered call has a 107 day duration, provides 2.52% downside protection and a 3.26% assigned return rate for an 11.12% annualized return rate (comparison purposes only). [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]