McAfee (MFE) 10/26/09 PriceWatch Alert Could Hit 13.41% Return

Posted: Monday, October 26, 2009 8:45 AM EDT

McAfee (NYSE: MFE) ended the last trading session at $43.73. So far the stock has hit a 52-week low of $24.72 and 52-week high of $45.68. McAfee stock has been showing support around 42.54 and resistance in the 45.92 range. Technical indicators for the stock are Bullish and S&P gives MFE a very positive 5 STAR (out of 5) strong buy rating. MFE appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Jan '10 40 covered call (MFE AH) for a net debit in the $38.83 area. That is also the break even stock price for this trade. This covered call has an 82 day duration, provides 11.21% downside protection and a 3.01% assigned return rate for a 13.41% annualized return rate (comparison purposes only). McAfee does not pay dividends at this time. [ABR-Seven Summits Research]

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