Amylin Pharmaceuticals (AMLN) 10/13/09 PriceWatch Alert With 35.56% Downside Protection

Posted: Tuesday, October 13, 2009 8:33 AM EDT

Amylin Pharmaceuticals (NasdaqNM: AMLN) closed yesterday at $14.06. So far the stock has hit a 52-week low of $5.50 and 52-week high of $15.90. Amylin Pharmaceuticals stock has been showing support around 13.75 and resistance in the 14.57 range. Technical indicators for the stock are Bullish and S&P gives AMLN a neutral 3 STAR (out of 5) hold rating. AMLN appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at an Apr '10 10 covered call (AQM DB) for a net debit in the $9.06 area. That is also the break even stock price for this trade. This covered call has an 186 day duration, provides 35.56% downside protection and a 10.38% assigned return rate for a 20.36% annualized return rate (comparison purposes only). Amylin Pharmaceuticals does not pay dividends at this time. [ATU-Seven Summits Research]

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