Celgene (CELG) PriceWatch Alert Up To 6.87% Downside Protection

Posted on Tuesday, September 23, 2008 8:07 AM

Celgene (NasdaqNM: CELG) closed yesterday at $64.01. So far the stock has hit a 52-week low of $41.26 and 52-week high of $77.39. Celgene stock has been showing support around 61.01 and resistance in the 69.99 range. Technical indicators for the stock are Bearish and S&P gives CELG a positive 4 STAR (out of 5) buy rating. CELG appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Nov '08 65 covered call (LQH KM) for a net debit in the $59.61 area. That is also the break even stock price for this trade. This covered call has a 60 day duration, provides 6.87% downside protection and a 9.04% assigned return rate for a 55.01% annualized return rate (comparison purposes only). Celgene 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]