UltraShort Oil & Gas ProShares (DUG) PriceWatch Alert With $16.01 Break Even

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

UltraShort Oil & Gas ProShares (PCX: DUG) closed yesterday at $20.11. So far DUG has hit a 52-week low of $15.00 and 52-week high of $86.50. DUG has been showing support around 19.05 and resistance in the 20.67 range. Technical indicators are Bullish. DUG appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at an Oct '09 17 covered call (DZG JQ) for a net debit in the $16.01 area. That is also the break even stock price for this trade. This covered call has a 103 day duration, provides 20.39% downside protection and a 6.18% assigned return rate for a 21.91% 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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