Wyeth (WYE) PriceWatch Alert Up To 12.83% Downside Protection

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

Wyeth (NYSE: WYE) closed yesterday at $31.96. So far the stock has hit a 52-week low of $31.43 and 52-week high of $49.80. Wyeth stock has been showing support around 29.30 and resistance in the 36.22 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 Jan '09 30 covered call (WYE AF) for a net debit in the $27.86 area. That is also the break even stock price for this trade. This covered call has a 99 day duration, provides 12.83% downside protection and a 7.68% assigned return rate for a 28.32% annualized return rate (comparison purposes only). Wyeth has a current annual dividend yield of 3.18%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]