Vanguard Financials ETF (VFH) PriceWatch Alert Technicals Showing Bullish

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

Vanguard Financials ETF (AMEX: VFH) closed yesterday at $40.21. So far VFH has hit a 52-week low of $32.32 and 52-week high of $63.93. VFH has been showing support around 39.12 and resistance in the 42.30 range. Technical indicators are Bullish. VFH appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Mar '09 40 covered call (VFH CN) for a net debit in the $38.16 area. That is also the break even stock price for this trade. This covered call has a 197 day duration, provides 5.10% downside protection and a 4.82% assigned return rate for an 8.93% 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]