iShares Dow Jones Transportation Average Index Fund (IYT) 11/3/09 PriceWatch Alert With 7.31% Downside Protection

Posted: Tuesday, November 03, 2009 8:27 AM EDT

iShares Dow Jones Transportation Average Index Fund (PCX: IYT) closed yesterday at $64.26. So far IYT has hit a 52-week low of $38.28 and 52-week high of $73.57. IYT has been showing support around 62.25 and resistance in the 66.49 range. Technical indicators are Bearish. IYT appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Mar '10 64 covered call (IHB CL) for a net debit in the $59.56 area. That is also the break even stock price for this trade. This covered call has a 137 day duration, provides 7.31% downside protection and a 7.45% assigned return rate for a 19.86% annualized return rate (comparison purposes only). [ATU-Seven Summits Research]

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