UltraShort Basic Materials ProShares (SMN) PriceWatch Alert Down To $14.47 Break Even

Posted: Monday, July 06, 2009 8:07 AM EDT

UltraShort Basic Materials ProShares (PCX: SMN) closed yesterday at $19.87. So far SMN has hit a 52-week low of $15.37 and 52-week high of $133.58. SMN has been showing support around 19.24 and resistance in the 20.30 range. Technical indicators are Bearish. SMN appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Jan '10 16 covered call (NOU AP) for a net debit in the $14.47 area. That is also the break even stock price for this trade. This covered call has a 194 day duration, provides 27.18% downside protection and a 10.57% assigned return rate for a 19.89% 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]

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