Vanguard Health Care ETF (VHT) PriceWatch Alert Down To $54.31 Break Even

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

Vanguard Health Care ETF (AMEX: VHT) closed yesterday at $56.16. So far VHT has hit a 52-week low of $50.50 and 52-week high of $63.99. VHT has been showing support around 55.39 and resistance in the 57.61 range. Technical indicators are Neutral. VHT appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Dec '08 56 covered call (VHT LD) for a net debit in the $54.31 area. That is also the break even stock price for this trade. This covered call has a 106 day duration, provides 3.29% downside protection and a 3.11% assigned return rate for a 10.72% 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]