Vanguard Mid-Cap ETF (VO) PriceWatch Alert Targets 10.06% Downside Protection

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

Vanguard Mid-Cap ETF (PCX: VO) closed yesterday at $45.71. So far VO has hit a 52-week low of $32.55 and 52-week high of $69.25. VO has been showing support around 45.17 and resistance in the 46.77 range. Technical indicators are Neutral. VO appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Dec '09 44 covered call (IUD LR) for a net debit in the $41.11 area. That is also the break even stock price for this trade. This covered call has a 166 day duration, provides 10.06% downside protection and a 7.03% assigned return rate for a 15.46% 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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