Novartis AG (NVS) PriceWatch Alert Down To $38.62 Break Even

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

Novartis AG (NYSE: NVS) closed yesterday at $42.22. So far the stock has hit a 52-week low of $33.34 and 52-week high of $61.30. Novartis AG stock has been showing support around 41.75 and resistance in the 42.67 range. Technical indicators for the stock are Bullish and S&P gives NVS a neutral 3 STAR (out of 5) hold rating. NVS appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at an Oct '09 40 covered call (NVS JH) for a net debit in the $38.62 area. That is also the break even stock price for this trade. This covered call has an 115 day duration, provides 8.53% downside protection and a 3.57% assigned return rate for an 11.34% annualized return rate (comparison purposes only). Novartis AG has a current annual dividend yield of 3.48%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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