Analog Devices Inc. (ADI) PriceWatch Alert Shows Bearish Technicals

Posted on Friday, September 05, 2008 8:07 AM

Analog Devices Inc. (NYSE: ADI) closed yesterday at $26.19. So far the stock has hit a 52-week low of $26.00 and 52-week high of $37.85. Analog Devices stock has been showing support around 25.67 and resistance in the 26.85 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 $23.54 area. That is also the break even stock price for this trade. This covered call has a 106 day duration, provides 10.12% downside protection and a 6.20% assigned return rate for a 21.36% annualized return rate (comparison purposes only). Analog Devices has a current annual dividend yield of 2.86%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]