Adobe Systems (ADBE) Trading On Bearish Technicals Just Under Resistance
Posted: Monday, August 02, 2010 8:09 AM EDT
By: Market Intelligence Center Staff
Adobe Systems (NASDAQ: ADBE) ended the last trading session at $28.72. So far the stock has hit a 52-week low of $26.01 and 52-week high of $38.20. Adobe Systems stock has been showing support around 27.83 and resistance in the 29.29 range. Technical indicators for the stock are Bearish and S&P gives ADBE a very positive 5 STAR (out of 5) strong buy rating. ADBE appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at an Oct '10 28 covered call for a net debit in the $26.62 area. That is also the break even stock price for this trade. This covered call has a 75 day duration, provides 7.31% downside protection and a 5.18% assigned return rate for a 25.23% annualized return rate (comparison purposes only). Adobe Systems does not pay dividends at this time. [ABR-Seven Summits Research]
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