Palm (PALM) 10/27/09 PriceWatch Alert Support At Around $13.68

Posted: Tuesday, October 27, 2009 8:09 AM EDT

Palm (NasdaqNM: PALM) closed yesterday at $14.28. So far the stock has hit a 52-week low of $1.14 and 52-week high of $18.09. Palm stock has been showing support around 13.68 and resistance in the 15.36 range. Technical indicators for the stock are Bearish and S&P gives PALM a very weak 1 STAR (out of 5) strong sell rating. PALM appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a May '10 10 covered call (UPY EB) for a net debit in the $9.08 area. That is also the break even stock price for this trade. This covered call has a 207 day duration, provides 36.41% downside protection and a 10.13% assigned return rate for a 17.87% annualized return rate (comparison purposes only). Palm does not pay dividends at this time. [ATU-Seven Summits Research]

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