Wyeth (WYE) 10/5/09 PriceWatch Alert Could Hit 7.78% Return

Posted: Monday, October 05, 2009 8:14 AM EDT

Wyeth (NYSE: WYE) closed yesterday at $48.18. So far the stock has hit a 52-week low of $28.06 and 52-week high of $48.80. Wyeth stock has been showing support around 47.91 and resistance in the 48.67 range. Technical indicators for the stock are Bullish 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 '10 47.50 covered call (WYE AW) for a net debit in the $46.48 area. That is also the break even stock price for this trade. This covered call has a 103 day duration, provides 3.53% downside protection and a 2.19% assigned return rate for a 7.78% annualized return rate (comparison purposes only). Wyeth has a current annual dividend yield of 2.47%. [ABR-Seven Summits Research]

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