SanDisk (SNDK) PriceWatch Alert With $8.81 Break Even

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

SanDisk (NasdaqNM: SNDK) closed yesterday at $13.46. So far the stock has hit a 52-week low of $13.06 and 52-week high of $56.46. SanDisk stock has been showing support around 12.97 and resistance in the 14.37 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 $8.81 area. That is also the break even stock price for this trade. This covered call has a 225 day duration, provides 34.55% downside protection and a 13.51% assigned return rate for a 21.91% 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]