Select Sector SPDR-Utilities (XLU) 11/3/09 PriceWatch Alert Could Hit 11.20% Return

Posted: Tuesday, November 03, 2009 8:44 AM EDT

Select Sector SPDR-Utilities (PCX: XLU) closed yesterday at $28.34. So far XLU has hit a 52-week low of $22.48 and 52-week high of $30.47. XLU has been showing support around 27.78 and resistance in the 28.98 range. Technical indicators are Bearish. XLU appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Mar '10 28 covered call (XLU CB) for a net debit in the $26.87 area. That is also the break even stock price for this trade. This covered call has a 137 day duration, provides 5.19% downside protection and a 4.21% assigned return rate for an 11.20% annualized return rate (comparison purposes only). [ATU-Seven Summits Research]

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