SPDR S&P Oil & Gas Exploration & Production ETF (XOP) PriceWatch Alert Bearish Price Movement

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

SPDR S&P Oil & Gas Exploration & Production ETF (AMEX: XOP) closed yesterday at $50.28. So far XOP has hit a 52-week low of $42.31 and 52-week high of $73.04. XOP has been showing support around 47.68 and resistance in the 53.24 range. Technical indicators are Bearish. XOP appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Mar '09 50 covered call (XOP CX) for a net debit in the $44.08 area. That is also the break even stock price for this trade. This covered call has a 197 day duration, provides 12.33% downside protection and a 13.43% assigned return rate for a 24.88% 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]