TD Ameritrade (AMTD) PriceWatch Alert Down To $16.60 Break Even

Posted on Monday, September 08, 2008 8:07 AM

TD Ameritrade (NasdaqNM: AMTD) ended the last trading session at $20.90. So far the stock has hit a 52-week low of $15.06 and 52-week high of $21.42. TD Ameritrade stock has been showing support around 19.56 and resistance in the 21.62 range. Technical indicators for the stock are Bullish and S&P gives AMTD a neutral 3 STAR (out of 5) hold rating. AMTD appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Jan '09 17.50 covered call (TQA AW) for a net debit in the $16.60 area. That is also the break even stock price for this trade. This covered call has a 131 day duration, provides 20.57% downside protection and a 5.42% assigned return rate for a 15.11% annualized return rate (comparison purposes only). TD Ameritrade 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]