SPDR S&P Retail ETF (XRT) PriceWatch Alert Could Hit 22.19% Return

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

SPDR S&P Retail ETF (PCX: XRT) closed yesterday at $26.66. So far XRT has hit a 52-week low of $14.81 and 52-week high of $34.72. XRT has been showing support around 25.76 and resistance in the 28.32 range. Technical indicators are Neutral. XRT appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Sep '09 25 covered call (XRT IY) for a net debit in the $23.91 area. That is also the break even stock price for this trade. This covered call has a 75 day duration, provides 10.32% downside protection and a 4.56% assigned return rate for a 22.19% 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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