Pharmaceutical HOLDRS (PPH) 11/3/09 PriceWatch Alert With $58.67 Break Even

Posted: Tuesday, November 03, 2009 8:35 AM EDT

Pharmaceutical HOLDRS (AMEX: PPH) closed yesterday at $61.37. So far PPH has hit a 52-week low of $49.28 and 52-week high of $68.45. PPH has been showing support around 60.74 and resistance in the 62.12 range. Technical indicators are Bearish. PPH appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Jan '10 60 covered call (PPH AL) for a net debit in the $58.67 area. That is also the break even stock price for this trade. This covered call has a 74 day duration, provides 4.40% downside protection and a 2.27% assigned return rate for an 11.18% annualized return rate (comparison purposes only). [ATU-Seven Summits Research]

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