China Telecom (CHA) PriceWatch Alert Technicals Showing Bearish
Posted: Monday, October 06, 2008 8:07 AM EDT
By: Market Intelligence Center Staff
China Telecom (NYSE: CHA) ended the last trading session at $40.45. So far the stock has hit a 52-week low of $35.69 and 52-week high of $98.66. China Telecom stock has been showing support around 38.32 and resistance in the 43.50 range. Technical indicators for the stock are Bearish and S&P gives CHA a neutral 3 STAR (out of 5) hold rating. CHA appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Jan '09 40 covered call (CHA AH) for a net debit in the $36.15 area. That is also the break even stock price for this trade. This covered call has a 103 day duration, provides 10.63% downside protection and a 10.65% assigned return rate for a 37.74% annualized return rate (comparison purposes only). China Telecom has a current annual dividend yield of 2.64%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]
CLICK HERE: FREE China Telecom (CHA) Stock ReportSee what our analysts have uncovered about China Telecom (CHA).