SPDR S&P 500 ETF (SPY) PriceWatch Alert Technicals Showing Bearish

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

SPDR S&P 500 ETF (AMEX: SPY) closed yesterday at $124.03. So far SPY has hit a 52-week low of $120.02 and 52-week high of $157.52. SPY has been showing support around 121.80 and resistance in the 128.34 range. Technical indicators are Bearish. SPY appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Nov '08 124 covered call (SPY KT) for a net debit in the $118.78 area. That is also the break even stock price for this trade. This covered call has a 78 day duration, provides 4.23% downside protection and a 4.39% assigned return rate for a 20.56% 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]