Amylin Pharmaceuticals (AMLN) 3/15/10 PriceWatch Alert Support Down To $16.71

Posted: Monday, March 15, 2010 8:41 AM EDT
By: Market Intelligence Center Staff

Amylin Pharmaceuticals (NASDAQ: AMLN) ended the last trading session at $20.26. So far the stock has hit a 52-week low of $8.56 and 52-week high of $21.58. Amylin Pharmaceuticals stock has been showing support around 16.71 and resistance in the 23.35 range. Technical indicators for the stock are Bullish and S&P gives AMLN a neutral 3 STAR (out of 5) hold rating. AMLN appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at an Oct '10 15 covered call for a net debit in the $13.46 area. That is also the break even stock price for this trade. This covered call has a 215 day duration, provides 33.56% downside protection and an 11.44% assigned return rate for a 19.42% 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 AMLN Jan '11 5 Call and selling the Oct '10 15 call for a $9.45 debit. The trade has a 215 day life and would provide 28.68% downside protection and a 5.82% assigned return rate for a 10.00% annualized return rate (for comparison purposes only). Amylin Pharmaceuticals does not pay dividends at this time. [ABR-Seven Summits Research]