Illumina (ILMN) PriceWatch Alert Could Hit 20.77% Return

Posted on Friday, October 10, 2008 8:07 AM

Illumina (NasdaqNM: ILMN) closed yesterday at $29.00. So far the stock has hit a 52-week low of $25.17 and 52-week high of $47.88. Illumina stock has been showing support around 26.09 and resistance in the 33.93 range. Technical indicators for the stock are Bearish and S&P gives ILMN a neutral 3 STAR (out of 5) hold rating. ILMN appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Jan '09 22.50 covered call (IQA AR) for a net debit in the $21.30 area. That is also the break even stock price for this trade. This covered call has a 99 day duration, provides 26.55% downside protection and a 5.63% assigned return rate for a 20.77% annualized return rate (comparison purposes only). Illumina 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]