Vanguard Small-Cap ETF (VB) PriceWatch Alert Shows Bearish Technicals

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

Vanguard Small-Cap ETF (AMEX: VB) closed yesterday at $63.57. So far VB has hit a 52-week low of $56.80 and 52-week high of $76.45. VB has been showing support around 62.19 and resistance in the 65.79 range. Technical indicators are Bearish. VB appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Mar '09 63 covered call (VB CK) for a net debit in the $57.97 area. That is also the break even stock price for this trade. This covered call has a 197 day duration, provides 8.81% downside protection and an 8.68% assigned return rate for a 16.08% 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]