Utilities HOLDRS (UTH) PriceWatch Alert Support Down To $114.87

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

Utilities HOLDRS (AMEX: UTH) closed yesterday at $117.07. So far UTH has hit a 52-week low of $116.16 and 52-week high of $150.57. UTH has been showing support around 114.87 and resistance in the 119.65 range. Technical indicators are Bearish. UTH appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Nov '08 115 covered call (UTH KC) for a net debit in the $111.97 area. That is also the break even stock price for this trade. This covered call has a 78 day duration, provides 4.36% downside protection and a 2.71% assigned return rate for a 12.66% 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]