SPDR S&P Metals & Mining ETF (XME) PriceWatch Alert Targets 37.69% Return

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

SPDR S&P Metals & Mining ETF (AMEX: XME) closed yesterday at $60.98. So far XME has hit a 52-week low of $53.02 and 52-week high of $96.09. XME has been showing support around 56.71 and resistance in the 67.29 range. Technical indicators are Bearish. XME appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Dec '08 60 covered call (XME LH) for a net debit in the $54.08 area. That is also the break even stock price for this trade. This covered call has a 106 day duration, provides 11.32% downside protection and a 10.95% assigned return rate for a 37.69% 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]