Oil Service HOLDRS (OIH) 11/6/09 PriceWatch Alert At $112.55 Break Even

Posted: Friday, November 06, 2009 8:43 AM EDT

Oil Service HOLDRS (AMEX: OIH) closed yesterday at $121.75. So far OIH has hit a 52-week low of $60.96 and 52-week high of $132.39. OIH has been showing support around 118.61 and resistance in the 123.73 range. Technical indicators are Bullish. OIH appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Jan '10 120 covered call (OIH AD) for a net debit in the $112.55 area. That is also the break even stock price for this trade. This covered call has a 71 day duration, provides 7.56% downside protection and a 6.62% assigned return rate for a 34.03% annualized return rate (comparison purposes only). [FBB-Seven Summits Research]

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