Wyeth (WYE) PriceWatch Alert for October 3, 2008

Posted on Friday, October 03, 2008 8:07 AM

Wyeth (NYSE: WYE) closed yesterday at $37.45. So far the stock has hit a 52-week low of $35.80 and 52-week high of $49.80. Wyeth stock has been showing support around 36.06 and resistance in the 39.50 range. Technical indicators for the stock are Bearish and S&P gives WYE a neutral 3 STAR (out of 5) hold rating. WYE appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Nov '08 35 covered call (WYE KG) for a net debit in the $33.75 area. That is also the break even stock price for this trade. This covered call has a 50 day duration, provides 9.88% downside protection and a 3.70% assigned return rate for a 27.04% annualized return rate (comparison purposes only). Wyeth has a current annual dividend yield of 3.03%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]