Sanofi Aventis (SNY) Trading In Tight Support/Resistance Range

Posted: Thursday, November 05, 2009 9:33 AM EDT

Sanofi Aventis (NYSE: SNY) closed yesterday at $36.99. So far the stock has hit a 52-week low of $23.95 and 52-week high of $40.17. Sanofi Aventis stock has been showing support around 36.38 and resistance in the 37.66 range. Technical indicators for the stock are Neutral and S&P gives SNY a neutral 3 STAR (out of 5) hold rating. SNY appears on the Investors Observer Analysts Favorites list. For a hedged play on this stock, look at a Jan '10 35 covered call (SNY AG) for a net debit in the $33.99 area. That is also the break even stock price for this trade. This covered call has a 72 day duration, provides 8.11% downside protection and a 2.97% assigned return rate for a 15.06% annualized return rate (comparison purposes only). Sanofi Aventis has a current annual dividend yield of 3.06%. [THA-Seven Summits Research]

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