Google (GOOG) PriceWatch Alert Bearish Price Movement

Posted on Tuesday, July 22, 2008 8:07 AM

Google (NasdaqNM: GOOG) closed yesterday at $468.80. So far the stock has hit a 52-week low of $412.11 and 52-week high of $747.24. Google stock has been showing support around 454.47 and resistance in the 491.25 range. Technical indicators for the stock are Bearish and S&P gives GOOG a neutral 3 STAR (out of 5) hold rating. GOOG appears on the Investors Observer Analysts Favorites list. For a hedged play on this stock, look at a Sep '08 520 covered call (GOP IV) for a net debit in the $459.80 area. That is also the break even stock price for this trade. This covered call has a 60 day duration, provides 1.92% downside protection and a 13.09% assigned return rate for a 79.65% annualized return rate (comparison purposes only). Google does not pay dividends at this time. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]