SanDisk (SNDK) PriceWatch Alert Up To 37.26% Downside Protection

Posted on Wednesday, September 03, 2008 8:07 AM

SanDisk (NasdaqNM: SNDK) ended the last trading session at $14.36. 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 13.68 and resistance in the 15.46 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 $9.01 area. That is also the break even stock price for this trade. This covered call has a 227 day duration, provides 37.26% downside protection and a 10.99% assigned return rate for a 17.67% 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]