Zimmer (ZMH) PriceWatch Alert Targets 2.29% Downside Protection

Posted on Wednesday, August 27, 2008 8:07 AM

Zimmer (NYSE: ZMH) closed yesterday at $72.13. 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 70.83 and resistance in the 72.95 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 $70.48 area. That is also the break even stock price for this trade. This covered call has a 52 day duration, provides 2.29% downside protection and a 6.41% assigned return rate for a 45.02% 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]