Celgene (CELG) PriceWatch Alert With $59.14 Break Even

Posted on Wednesday, September 24, 2008 8:07 AM

Celgene (NasdaqNM: CELG) closed yesterday at $63.24. 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 61.73 and resistance in the 66.25 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 $59.14 area. That is also the break even stock price for this trade. This covered call has a 59 day duration, provides 6.48% downside protection and a 9.91% assigned return rate for a 61.30% 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]