SPDR S&P 500 ETF (SPY) PriceWatch Alert With $85.01 Break Even

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

SPDR S&P 500 ETF (PCX: SPY) closed yesterday at $89.81. So far SPY has hit a 52-week low of $67.10 and 52-week high of $131.51. SPY has been showing support around 88.04 and resistance in the 93.24 range. Technical indicators are Neutral. SPY appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Sep '09 89 covered call (SZC IK) for a net debit in the $85.01 area. That is also the break even stock price for this trade. This covered call has a 75 day duration, provides 5.34% downside protection and a 4.69% assigned return rate for a 22.84% 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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