Arch Capital Group (ACGL) PriceWatch Alert Could Hit 13.73% Return

Posted on Monday, October 06, 2008 8:07 AM

Arch Capital Group (NasdaqNM: ACGL) ended the last trading session at $72.88. 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 69.47 and resistance in the 75.97 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 $68.08 area. That is also the break even stock price for this trade. This covered call has a 75 day duration, provides 6.59% downside protection and a 2.82% assigned return rate for a 13.73% 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]