iShares Dow Jones Transportation Average Index Fund (IYT) 11/23/09 PriceWatch Alert With 6.36% Downside Protection

Posted: Monday, November 23, 2009 8:32 AM EDT

iShares Dow Jones Transportation Average Index Fund (PCX: IYT) closed yesterday at $70.81. 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 70.12 and resistance in the 71.26 range. Technical indicators are Bullish. IYT appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Mar '10 70 covered call (IHB CR) for a net debit in the $66.31 area. That is also the break even stock price for this trade. This covered call has an 117 day duration, provides 6.36% downside protection and a 5.56% assigned return rate for a 17.36% annualized return rate (comparison purposes only). [ABR-Seven Summits Research]

Click Symbol For More News On: (IYT)