Rochester, NY 7/16/2009 12:25:17 AM
DIA - Diamonds Trust, Series 1 PriceWatch Alert Down To $80.11 Break Even
DIAMONDS Trust, Series 1.
DIAMONDS Trust, Series 1., DIA
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Diamonds Trust, Series 1 closed yesterday at $83.31. So far DIA has hit a 52-week low of $64.78 and 52-week high of $118.73. DIA has been showing support around 80.70 and resistance in the 84.70 range. Technical indicators are Bearish. DIA appears on the Investors Observer Select ETF and HOLDR list. For a hedged play on this stock, look at a Sep '09 83 covered call (DAV IE) for a net debit in the $80.11 area. That is also the break even stock price for this trade. This covered call has a 67 day duration, provides 3.84% downside protection and a 3.61% assigned return rate for a 19.65% annualized return rate (comparison purposes only). A lower cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the DIA Jan '11 55 Call (ZAV AC) and selling the Sep '09 83 call (DAV IE) for a $25.70 debit. The trade has a 67 day life and would provide 3.13% downside protection and an 8.95% assigned return rate for a 49.00% annualized return rate
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