iShares Dow Jones U.S. Basic Materials Sector Index Fund (IYM) 11/6/09 PriceWatch Alert Could Hit 22.06% Return

Posted: Friday, November 06, 2009 8:45 AM EDT

iShares Dow Jones U.S. Basic Materials Sector Index Fund (PCX: IYM) closed yesterday at $55.78. So far IYM has hit a 52-week low of $28.17 and 52-week high of $58.95. IYM has been showing support around 54.13 and resistance in the 56.67 range. Technical indicators are Bullish. IYM appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Mar '10 55 covered call (IYM CC) for a net debit in the $50.88 area. That is also the break even stock price for this trade. This covered call has a 134 day duration, provides 8.78% downside protection and an 8.10% assigned return rate for a 22.06% annualized return rate (comparison purposes only). [FBB-Seven Summits Research]

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