Oil Service HOLDRS (OIH) 11/3/09 PriceWatch Alert With $107.74 Break Even

Posted: Tuesday, November 03, 2009 8:33 AM EDT

Oil Service HOLDRS (AMEX: OIH) closed yesterday at $117.84. So far OIH has hit a 52-week low of $60.96 and 52-week high of $132.39. OIH has been showing support around 112.87 and resistance in the 122.83 range. Technical indicators are Neutral. OIH appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Jan '10 115 covered call (OIH AC) for a net debit in the $107.74 area. That is also the break even stock price for this trade. This covered call has a 74 day duration, provides 8.57% downside protection and a 6.74% assigned return rate for a 33.24% annualized return rate (comparison purposes only). [ATU-Seven Summits Research]

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