SPDR S&P Biotech ETF (XBI) 11/11/09 PriceWatch Alert Targets 6.38% Downside Protection
Posted: Wednesday, November 11, 2009 8:06 AM EDT
By: Market Intelligence Center Staff
SPDR S&P Biotech ETF (PCX: XBI) closed yesterday at $50.19. So far XBI has hit a 52-week low of $43.03 and 52-week high of $56.92. XBI has been showing support around 49.38 and resistance in the 50.86 range. Technical indicators are Bearish. XBI appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Mar '10 50 covered call (XBI CX) for a net debit in the $46.99 area. That is also the break even stock price for this trade. This covered call has a 129 day duration, provides 6.38% downside protection and a 6.41% assigned return rate for an 18.12% annualized return rate (comparison purposes only). [WBA-Seven Summits Research]
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