Hewlett Packard (HPQ) PriceWatch Alert At $35.41 Break Even

Posted: Wednesday, June 24, 2009 8:07 AM EDT

Hewlett Packard (NYSE: HPQ) closed yesterday at $37.36. So far the stock has hit a 52-week low of $25.39 and 52-week high of $49.20. Hewlett Packard stock has been showing support around 36.88 and resistance in the 38.20 range. Technical indicators for the stock are Bullish and S&P gives HPQ a very positive 5 STAR (out of 5) strong buy rating. HPQ appears on the Investors Observer Analysts Favorites list. For a hedged play on this stock, look at an Aug '09 37.50 covered call (HPQ HU) for a net debit in the $35.41 area. That is also the break even stock price for this trade. This covered call has a 59 day duration, provides 5.22% downside protection and a 5.90% assigned return rate for a 36.51% annualized return rate (comparison purposes only). Hewlett Packard has a current annual dividend yield of 0.83%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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