Select Sector SPDR-Technology (XLK) PriceWatch Alert With $20.07 Break Even

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

Select Sector SPDR-Technology (AMEX: XLK) closed yesterday at $21.52. So far XLK has hit a 52-week low of $19.76 and 52-week high of $28.60. XLK has been showing support around 21.03 and resistance in the 22.41 range. Technical indicators are Bearish. XLK appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Dec '08 21 covered call (XLK LU) for a net debit in the $20.07 area. That is also the break even stock price for this trade. This covered call has a 106 day duration, provides 6.74% downside protection and a 4.63% assigned return rate for a 15.96% 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]