KBW Bank ETF (KBE) 11/3/09 PriceWatch Alert Up To 22.38% Return

Posted: Tuesday, November 03, 2009 8:23 AM EDT

KBW Bank ETF (PCX: KBE) closed yesterday at $21.15. So far KBE has hit a 52-week low of $8.90 and 52-week high of $30.72. KBE has been showing support around 20.01 and resistance in the 22.21 range. Technical indicators are Bearish. KBE appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Mar '10 20 covered call (KEJ CT) for a net debit in the $18.45 area. That is also the break even stock price for this trade. This covered call has a 137 day duration, provides 12.77% downside protection and an 8.40% assigned return rate for a 22.38% annualized return rate (comparison purposes only). [ATU-Seven Summits Research]

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