KBW Bank ETF (KBE) PriceWatch Alert With $14.50 Break Even

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

KBW Bank ETF (PCX: KBE) closed yesterday at $17.50. So far KBE has hit a 52-week low of $8.90 and 52-week high of $40.40. KBE has been showing support around 17.22 and resistance in the 17.98 range. Technical indicators are Bearish. KBE appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Dec '09 16 covered call (KEJ LP) for a net debit in the $14.50 area. That is also the break even stock price for this trade. This covered call has a 166 day duration, provides 17.14% downside protection and a 10.34% assigned return rate for a 22.75% 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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