Vanguard Telecommunication Services ETF (AMEX: VOX) Hedged Price Watch Alert

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

Vanguard Telecommunication Services ETF (AMEX: VOX) closed yesterday at $68.08. So far VOX has hit a 52-week low of $57.00 and 52-week high of $85.37. VOX has been showing support around 67.49 and resistance in the 68.51 range. Technical indicators are Bullish. VOX appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Sep '08 68 covered call (VOX IP) for a net debit in the $66.63 area. That is also the break even stock price for this trade. This covered call has a 107 day duration, provides 2.13% downside protection and a 2.06% assigned return rate for a 7.01% 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]