Taiwan Semiconductor Manufacturing (TSM) PriceWatch Alert With 8.17% Downside Protection

Posted: Thursday, July 16, 2009 8:07 AM EDT

Taiwan Semiconductor Manufacturing (NYSE: TSM) closed yesterday at $9.79. So far the stock has hit a 52-week low of $5.83 and 52-week high of $12.00. Taiwan Semiconductor Manufacturing stock has been showing support around 9.51 and resistance in the 10.07 range. Technical indicators for the stock are Bullish and S&P gives TSM a positive 4 STAR (out of 5) buy rating. TSM appears on the Investors Observer Analysts Favorites list. For a hedged play on this stock, look at a Jan '10 10 covered call (TSM AB) for a net debit in the $8.99 area. That is also the break even stock price for this trade. This covered call has an 184 day duration, provides 8.17% downside protection and an 11.23% assigned return rate for a 22.29% annualized return rate (comparison purposes only). Taiwan Semiconductor Manufacturing has a current annual dividend yield of 4.03%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

Click Symbol For More News On: (TSM)