GlaxoSmithKline PLC (GSK) 10/28/09 PriceWatch Alert Up To 15.79% Return

Posted: Wednesday, October 28, 2009 8:14 AM EDT

GlaxoSmithKline PLC (NYSE: GSK) closed yesterday at $40.87. So far the stock has hit a 52-week low of $27.15 and 52-week high of $42.18. GlaxoSmithKline PLC stock has been showing support around 40.43 and resistance in the 41.61 range. Technical indicators for the stock are Bullish and S&P gives GSK a neutral 3 STAR (out of 5) hold rating. GSK appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Dec '09 40 covered call (GSK LH) for a net debit in the $39.12 area. That is also the break even stock price for this trade. This covered call has a 52 day duration, provides 4.28% downside protection and a 2.25% assigned return rate for a 15.79% annualized return rate (comparison purposes only). GlaxoSmithKline PLC has a current annual dividend yield of 4.57%. [WBA-Seven Summits Research]

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