Lam Research (LRCX) 10/26/09 PriceWatch Alert With $33.43 Break Even

Posted: Monday, October 26, 2009 8:40 AM EDT

Lam Research (NasdaqNM: LRCX) ended the last trading session at $36.33. So far the stock has hit a 52-week low of $14.72 and 52-week high of $38.51. Lam Research stock has been showing support around 35.23 and resistance in the 37.97 range. Technical indicators for the stock are Bullish and S&P gives LRCX a neutral 3 STAR (out of 5) hold rating. LRCX appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Dec '09 35 covered call (LMQ LG) for a net debit in the $33.43 area. That is also the break even stock price for this trade. This covered call has a 54 day duration, provides 7.98% downside protection and a 4.70% assigned return rate for a 31.74% annualized return rate (comparison purposes only). Lam Research does not pay dividends at this time. [ABR-Seven Summits Research]

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