Autodesk (ADSK) PriceWatch Alert With $33.83 Break Even

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

Autodesk (NasdaqNM: ADSK) closed yesterday at $36.93. So far the stock has hit a 52-week low of $29.58 and 52-week high of $51.32. Autodesk stock has been showing support around 35.40 and resistance in the 38.08 range. Technical indicators for the stock are Bullish and S&P gives ADSK a very positive 5 STAR (out of 5) strong buy rating. ADSK appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at an Oct '08 35 covered call (ADQ JG) for a net debit in the $33.83 area. That is also the break even stock price for this trade. This covered call has a 51 day duration, provides 8.39% downside protection and a 3.46% assigned return rate for a 24.75% annualized return rate (comparison purposes only). Autodesk 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]