iShares iBoxx $ High Yield Corporate Bond Fund (HYG) 11/6/09 PriceWatch Alert Up To 0.94% Downside Protection

Posted: Friday, November 06, 2009 8:47 AM EDT

iShares iBoxx $ High Yield Corporate Bond Fund (PCX: HYG) closed yesterday at $85.53. So far HYG has hit a 52-week low of $61.50 and 52-week high of $87.20. HYG has been showing support around 85.06 and resistance in the 85.90 range. Technical indicators are Bullish. HYG appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Jun '10 87 covered call (HYG FI) for a net debit in the $84.73 area. That is also the break even stock price for this trade. This covered call has a 225 day duration, provides 0.94% downside protection and a 2.68% assigned return rate for a 4.35% annualized return rate (comparison purposes only). [FBB-Seven Summits Research]

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