Vanguard Small-Cap ETF (VB) PriceWatch Alert Could Hit 25.14% Return

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

Vanguard Small-Cap ETF (PCX: VB) closed yesterday at $45.19. So far VB has hit a 52-week low of $29.56 and 52-week high of $67.23. VB has been showing support around 44.24 and resistance in the 46.28 range. Technical indicators are Bullish. VB appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Sep '09 45 covered call (VB ID) for a net debit in the $42.79 area. That is also the break even stock price for this trade. This covered call has a 75 day duration, provides 5.31% downside protection and a 5.16% assigned return rate for a 25.14% 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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