Arch Capital Group (ACGL) PriceWatch Alert At $66.98 Break Even

Posted on Thursday, October 02, 2008 8:07 AM

Arch Capital Group (NasdaqNM: ACGL) closed yesterday at $73.28. So far the stock has hit a 52-week low of $63.74 and 52-week high of $80.47. Arch Capital Group stock has been showing support around 70.64 and resistance in the 74.60 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 Mar '09 70 covered call (UOZ CN) for a net debit in the $66.98 area. That is also the break even stock price for this trade. This covered call has a 170 day duration, provides 8.60% downside protection and a 4.51% assigned return rate for a 9.68% 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]