Thermo Fisher Scientific (TMO) PriceWatch Alert Targets 8.46% Downside Protection

Posted: Monday, July 06, 2009 8:07 AM EDT

Thermo Fisher Scientific (NYSE: TMO) closed yesterday at $39.00. So far the stock has hit a 52-week low of $26.65 and 52-week high of $62.77. Thermo Fisher Scientific stock has been showing support around 38.14 and resistance in the 40.72 range. Technical indicators for the stock are Neutral and S&P gives TMO a neutral 3 STAR (out of 5) hold rating. TMO appears on the Investors Observer Analysts Favorites list. For a hedged play on this stock, look at a Dec '09 40 covered call (TMO LH) for a net debit in the $35.70 area. That is also the break even stock price for this trade. This covered call has a 166 day duration, provides 8.46% downside protection and a 12.04% assigned return rate for a 26.48% annualized return rate (comparison purposes only). Thermo Fisher Scientific 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]

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