iShares Russell Microcap Index (IWC) PriceWatch Alert With 7.72% Downside Protection

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

iShares Russell Microcap Index (PCX: IWC) closed yesterday at $32.38. So far IWC has hit a 52-week low of $21.46 and 52-week high of $49.74. IWC has been showing support around 31.81 and resistance in the 33.25 range. Technical indicators are Bullish. IWC appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Sep '09 31 covered call (IWG IE) for a net debit in the $29.88 area. That is also the break even stock price for this trade. This covered call has a 75 day duration, provides 7.72% downside protection and a 3.75% assigned return rate for an 18.24% 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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