SanDisk (SNDK) PriceWatch Alert Targets 39.11% Downside Protection

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

SanDisk (NasdaqNM: SNDK) closed yesterday at $14.83. So far the stock has hit a 52-week low of $13.06 and 52-week high of $58.35. SanDisk stock has been showing support around 13.91 and resistance in the 15.53 range. Technical indicators for the stock are Bearish and S&P gives SNDK a weak 2 STAR (out of 5) sell rating. SNDK appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at an Apr '09 10 covered call (SWQ DB) for a net debit in the $9.03 area. That is also the break even stock price for this trade. This covered call has a 233 day duration, provides 39.11% downside protection and a 10.74% assigned return rate for a 16.83% annualized return rate (comparison purposes only). SanDisk 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]