UltraShort Basic Materials ProShares (SMN) PriceWatch Alert Targets 15.83% Downside Protection

Posted on Friday, September 05, 2008 8:07 AM

UltraShort Basic Materials ProShares (AMEX: SMN) closed yesterday at $42.33. So far SMN has hit a 52-week low of $25.82 and 52-week high of $59.60. SMN has been showing support around 37.24 and resistance in the 45.72 range. Technical indicators are Bullish. SMN appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Jan '09 40 covered call (SMN AN) for a net debit in the $35.63 area. That is also the break even stock price for this trade. This covered call has a 134 day duration, provides 15.83% downside protection and a 12.26% assigned return rate for a 33.41% 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]