iShares Dow Jones U.S. Telecommunications Sector Index Fund (IYZ) PriceWatch Alert Up To 3.43% Downside Protection

Posted on Wednesday, July 23, 2008 8:07 AM

iShares Dow Jones U.S. Telecommunications Sector Index Fund (PCX: IYZ) closed yesterday at $23.33. So far IYZ has hit a 52-week low of $21.57 and 52-week high of $34.98. IYZ has been showing support around 22.84 and resistance in the 23.62 range. Technical indicators are Bearish. IYZ appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Nov '08 24 covered call (IYZ KX) for a net debit in the $22.53 area. That is also the break even stock price for this trade. This covered call has a 122 day duration, provides 3.43% downside protection and a 6.52% assigned return rate for a 19.52% 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]