Palm (PALM) 10/28/09 PriceWatch Alert At $8.88 Break Even

Posted: Wednesday, October 28, 2009 8:35 AM EDT

Palm (NasdaqNM: PALM) closed yesterday at $13.38. 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 12.90 and resistance in the 14.24 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 $8.88 area. That is also the break even stock price for this trade. This covered call has a 206 day duration, provides 33.63% downside protection and a 12.61% assigned return rate for a 22.35% annualized return rate (comparison purposes only). Palm does not pay dividends at this time. [WBA-Seven Summits Research]

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