Pharmaceutical HOLDRS (PPH) PriceWatch Alert Targets 7.57% Return

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

Pharmaceutical HOLDRS (AMEX: PPH) closed yesterday at $58.47. So far PPH has hit a 52-week low of $49.28 and 52-week high of $72.49. PPH has been showing support around 57.88 and resistance in the 59.56 range. Technical indicators are Bullish. PPH appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Nov '09 55 covered call (PPH KK) for a net debit in the $53.47 area. That is also the break even stock price for this trade. This covered call has a 138 day duration, provides 8.55% downside protection and a 2.86% assigned return rate for a 7.57% 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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