iShares Dow Jones Transportation Average Index Fund (IYT) 11/6/09 PriceWatch Alert With 6.31% Downside Protection

Posted: Friday, November 06, 2009 8:25 AM EDT

iShares Dow Jones Transportation Average Index Fund (PCX: IYT) closed yesterday at $68.13. So far IYT has hit a 52-week low of $38.28 and 52-week high of $73.57. IYT has been showing support around 66.38 and resistance in the 69.04 range. Technical indicators are Bearish. IYT appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Mar '10 68 covered call (IHB CP) for a net debit in the $63.83 area. That is also the break even stock price for this trade. This covered call has a 134 day duration, provides 6.31% downside protection and a 6.53% assigned return rate for a 17.80% annualized return rate (comparison purposes only). [FBB-Seven Summits Research]

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