Adobe Systems (ADBE) PriceWatch Alert Up To 7.45% Downside Protection

Posted on Friday, August 29, 2008 8:07 AM

Adobe Systems (NasdaqNM: ADBE) closed yesterday at $44.31. So far the stock has hit a 52-week low of $30.70 and 52-week high of $48.47. Adobe Systems stock has been showing support around 43.70 and resistance in the 45.04 range. Technical indicators for the stock are Bullish and S&P gives ADBE a neutral 3 STAR (out of 5) hold rating. ADBE appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at an Oct '08 42.50 covered call (AEQ JV) for a net debit in the $41.01 area. That is also the break even stock price for this trade. This covered call has a 50 day duration, provides 7.45% downside protection and a 3.63% assigned return rate for a 26.52% annualized return rate (comparison purposes only). Adobe Systems 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]