iShares S&P GSSI Natural Resources Index (IGE) PriceWatch Alert With 4.85% Downside Protection

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

iShares S&P GSSI Natural Resources Index (PCX: IGE) closed yesterday at $26.81. So far IGE has hit a 52-week low of $20.02 and 52-week high of $49.70. IGE has been showing support around 26.45 and resistance in the 27.51 range. Technical indicators are Bearish. IGE appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at an Oct '09 27 covered call (IGE JA) for a net debit in the $25.51 area. That is also the break even stock price for this trade. This covered call has a 103 day duration, provides 4.85% downside protection and a 5.84% assigned return rate for a 20.70% 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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