Vanguard Energy ETF (VDE) 11/6/09 PriceWatch Alert Targets 9.39% Downside Protection

Posted: Friday, November 06, 2009 8:37 AM EDT

Vanguard Energy ETF (PCX: VDE) closed yesterday at $84.16. So far VDE has hit a 52-week low of $52.19 and 52-week high of $89.44. VDE has been showing support around 82.27 and resistance in the 85.25 range. Technical indicators are Bullish. VDE appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Mar '10 80 covered call (VDE CP) for a net debit in the $76.26 area. That is also the break even stock price for this trade. This covered call has a 134 day duration, provides 9.39% downside protection and a 4.90% assigned return rate for a 13.36% annualized return rate (comparison purposes only). [FBB-Seven Summits Research]

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