Arch Capital Group (ACGL) PriceWatch Alert Down To $51.80 Break Even

Posted on Friday, October 10, 2008 8:07 AM

Arch Capital Group (NasdaqNM: ACGL) closed yesterday at $59.20. So far the stock has hit a 52-week low of $57.88 and 52-week high of $80.47. Arch Capital Group stock has been showing support around 51.36 and resistance in the 72.24 range. Technical indicators for the stock are Bearish 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 55 covered call (UOZ LK) for a net debit in the $51.80 area. That is also the break even stock price for this trade. This covered call has a 71 day duration, provides 12.50% downside protection and a 6.18% assigned return rate for a 31.76% 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]