iShares S&P 500 Index (IVV) 11/6/09 PriceWatch Alert Targets 4.95% Downside Protection

Posted: Friday, November 06, 2009 8:31 AM EDT

iShares S&P 500 Index (PCX: IVV) closed yesterday at $107.16. So far IVV has hit a 52-week low of $67.22 and 52-week high of $110.75. IVV has been showing support around 105.30 and resistance in the 108.14 range. Technical indicators are Bullish. IVV appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Mar '10 107 covered call (ILD CC) for a net debit in the $101.86 area. That is also the break even stock price for this trade. This covered call has a 134 day duration, provides 4.95% downside protection and a 5.05% assigned return rate for a 13.75% annualized return rate (comparison purposes only). [FBB-Seven Summits Research]

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