McAfee (MFE) 10/28/09 PriceWatch Alert Targets 18.37% Return

Posted: Wednesday, October 28, 2009 8:06 AM EDT

McAfee (NYSE: MFE) closed yesterday at $43.08. 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 42.21 and resistance in the 44.77 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 Dec '09 40 covered call (MFE LH) for a net debit in the $38.98 area. That is also the break even stock price for this trade. This covered call has a 52 day duration, provides 9.52% downside protection and a 2.62% assigned return rate for an 18.37% annualized return rate (comparison purposes only). McAfee does not pay dividends at this time. [WBA-Seven Summits Research]

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