Zimmer (ZMH) PriceWatch Alert Support Down To $70.28

Posted on Tuesday, August 26, 2008 8:07 AM

Zimmer (NYSE: ZMH) closed yesterday at $71.95. So far the stock has hit a 52-week low of $63.00 and 52-week high of $85.91. Zimmer stock has been showing support around 70.28 and resistance in the 74.94 range. Technical indicators for the stock are Bullish and S&P gives ZMH a neutral 3 STAR (out of 5) hold rating. ZMH appears on the Investors Observer Analysts Favorites list. For a hedged play on this stock, look at an Oct '08 75 covered call (ZMH JO) for a net debit in the $70.30 area. That is also the break even stock price for this trade. This covered call has a 53 day duration, provides 2.29% downside protection and a 6.69% assigned return rate for a 46.04% annualized return rate (comparison purposes only). Zimmer 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]