Advent Software (ADVS) PriceWatch Alert With 12.87% Downside Protection

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

Advent Software (NasdaqNM: ADVS) closed yesterday at $43.51. So far the stock has hit a 52-week low of $32.90 and 52-week high of $58.27. Advent Software stock has been showing support around 42.08 and resistance in the 46.36 range. Technical indicators for the stock are Bullish and S&P gives ADVS a neutral 3 STAR (out of 5) hold rating. ADVS appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Nov '08 40 covered call (UIV KH) for a net debit in the $37.91 area. That is also the break even stock price for this trade. This covered call has a 78 day duration, provides 12.87% downside protection and a 5.51% assigned return rate for a 25.80% annualized return rate (comparison purposes only). Advent Software 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]