Taiwan Semiconductor Manufacturing (TSM) 10/9/09 PriceWatch Alert Targets 22.06% Return

Posted: Friday, October 09, 2009 8:22 AM EDT

Taiwan Semiconductor Manufacturing (NYSE: TSM) closed yesterday at $9.92. 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 9.67 and resistance in the 10.33 range. Technical indicators for the stock are Bearish 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 an Apr '10 10 covered call (TSM DB) for a net debit in the $8.97 area. That is also the break even stock price for this trade. This covered call has a 190 day duration, provides 9.58% downside protection and an 11.48% assigned return rate for a 22.06% annualized return rate (comparison purposes only). Taiwan Semiconductor Manufacturing has a current annual dividend yield of 3.51%. [FBB-Seven Summits Research]

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