Novartis AG (NVS) 10/27/09 PriceWatch Alert Targets 3.92% Downside Protection

Posted: Tuesday, October 27, 2009 8:12 AM EDT

Novartis AG (NYSE: NVS) closed yesterday at $51.00. So far the stock has hit a 52-week low of $33.34 and 52-week high of $52.51. Novartis AG stock has been showing support around 50.01 and resistance in the 52.63 range. Technical indicators for the stock are Bullish and S&P gives NVS a neutral 3 STAR (out of 5) hold rating. NVS appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Dec '09 50 covered call (NVS LJ) for a net debit in the $49.00 area. That is also the break even stock price for this trade. This covered call has a 53 day duration, provides 3.92% downside protection and a 2.04% assigned return rate for a 14.05% annualized return rate (comparison purposes only). Novartis AG has a current annual dividend yield of 2.78%. [ATU-Seven Summits Research]

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