LG Philips (LPL) 10/22/09 PriceWatch Alert With 17.12% Downside Protection

Posted: Thursday, October 22, 2009 8:39 AM EDT

LG Philips (NYSE: LPL) closed yesterday at $13.73. So far the stock has hit a 52-week low of $5.33 and 52-week high of $15.85. LG Philips stock has been showing support around 13.52 and resistance in the 14.08 range. Technical indicators for the stock are Bearish and S&P gives LPL a neutral 3 STAR (out of 5) hold rating. LPL appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at an Apr '10 12.50 covered call (LPL DV) for a net debit in the $11.38 area. That is also the break even stock price for this trade. This covered call has a 177 day duration, provides 17.12% downside protection and a 9.84% assigned return rate for a 20.30% annualized return rate (comparison purposes only). LG Philips has a current annual dividend yield of 0.87%. [THA-Seven Summits Research]

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