Vanguard FTSE All-World ex-US Index ETF (VEU) PriceWatch Alert With 5.86% Downside Protection

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

Vanguard FTSE All-World ex-US Index ETF (AMEX: VEU) closed yesterday at $45.26. So far VEU has hit a 52-week low of $45.10 and 52-week high of $63.72. VEU has been showing support around 43.72 and resistance in the 48.02 range. Technical indicators are Bearish. VEU appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Dec '08 44 covered call (VEU LR) for a net debit in the $42.61 area. That is also the break even stock price for this trade. This covered call has a 106 day duration, provides 5.86% downside protection and a 3.26% assigned return rate for an 11.23% 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]