Arch Capital Group (ACGL) PriceWatch Alert With $68.33 Break Even

Posted on Wednesday, October 01, 2008 8:07 AM

Arch Capital Group (NasdaqNM: ACGL) closed yesterday at $73.03. So far the stock has hit a 52-week low of $33.03 and 52-week high of $80.47. Arch Capital Group stock has been showing support around 67.55 and resistance in the 78.41 range. Technical indicators for the stock are Bullish and S&P gives ACGL a neutral 3 STAR (out of 5) hold rating. ACGL appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Dec '08 70 covered call (UOZ LN) for a net debit in the $68.33 area. That is also the break even stock price for this trade. This covered call has an 80 day duration, provides 6.44% downside protection and a 2.44% assigned return rate for an 11.15% annualized return rate (comparison purposes only). Arch Capital Group does not pay dividends at this time. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]