Ultra Oil & Gas ProShares (DIG) PriceWatch Alert With 25.62% Downside Protection

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

Ultra Oil & Gas ProShares (PCX: DIG) closed yesterday at $24.59. So far DIG has hit a 52-week low of $16.93 and 52-week high of $117.31. DIG has been showing support around 23.78 and resistance in the 26.14 range. Technical indicators are Bearish. DIG appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Dec '09 20 covered call (DIC LT) for a net debit in the $18.29 area. That is also the break even stock price for this trade. This covered call has a 166 day duration, provides 25.62% downside protection and a 9.35% assigned return rate for a 20.56% 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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