Vanguard Financials ETF (VFH) 11/6/09 PriceWatch Alert With 7.33% Downside Protection

Posted: Friday, November 06, 2009 8:26 AM EDT

Vanguard Financials ETF (PCX: VFH) closed yesterday at $28.66. So far VFH has hit a 52-week low of $13.07 and 52-week high of $31.30. VFH has been showing support around 27.87 and resistance in the 29.11 range. Technical indicators are Bearish. VFH appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Mar '10 28 covered call (VFH CB) for a net debit in the $26.56 area. That is also the break even stock price for this trade. This covered call has a 134 day duration, provides 7.33% downside protection and a 5.42% assigned return rate for a 14.77% annualized return rate (comparison purposes only). [FBB-Seven Summits Research]

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