Analog Devices Inc. (ADI) PriceWatch Alert Targets 12.09% Return

Posted on Thursday, August 28, 2008 8:07 AM

Analog Devices Inc. (NYSE: ADI) closed yesterday at $28.19. So far the stock has hit a 52-week low of $26.15 and 52-week high of $38.06. Analog Devices stock has been showing support around 27.49 and resistance in the 28.63 range. Technical indicators for the stock are Bearish and S&P gives ADI a neutral 3 STAR (out of 5) hold rating. ADI appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Dec '08 25 covered call (ADI LE) for a net debit in the $24.09 area. That is also the break even stock price for this trade. This covered call has an 114 day duration, provides 14.54% downside protection and a 3.78% assigned return rate for a 12.09% annualized return rate (comparison purposes only). Analog Devices has a current annual dividend yield of 2.77%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]