CurrencyShares Euro Trust (FXE) PriceWatch Alert Up To 7.54% Return
Posted: Friday, August 14, 2009 8:22 AM EDT
CurrencyShares Euro Trust (PCX: FXE) closed yesterday at $142.77. So far FXE has hit a 52-week low of $124.04 and 52-week high of $149.33. FXE has been showing support around 142.24 and resistance in the 143.30 range. Technical indicators are Bullish. FXE appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Dec '09 142 covered call (FXE LL) for a net debit in the $138.37 area. That is also the break even stock price for this trade. This covered call has a 127 day duration, provides 3.08% downside protection and a 2.62% assigned return rate for a 7.54% annualized return rate (comparison purposes only). A lower cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the FXE Jan '11 110 Call (XXF AF) and selling the Dec '09 142 call (FXE LL) for a $29.90 debit. The trade has a 127 day life and would provide 2.01% downside protection and a 7.02% assigned return rate for a 20.00% annualized return rate (for comparison purposes only). [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]
Click Symbol For More News On: (FXE)
Limited Time Offer: Click here for “FREE PriceWatch Alerts” on leading stocks from Investors Observer. Get the right investing information at the right time. Give yourself EVERY edge in this market GO »