China Mobile (CHL) 10/29/09 PriceWatch Alert Could Hit 19.61% Return

Posted: Thursday, October 29, 2009 8:26 AM EDT

China Mobile (NYSE: CHL) closed yesterday at $46.90. So far the stock has hit a 52-week low of $38.51 and 52-week high of $59.22. China Mobile stock has been showing support around 45.73 and resistance in the 48.97 range. Technical indicators for the stock are Bearish and S&P gives CHL a neutral 3 STAR (out of 5) hold rating. CHL appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Dec '09 45 covered call (CJX LI) for a net debit in the $43.80 area. That is also the break even stock price for this trade. This covered call has a 51 day duration, provides 6.61% downside protection and a 2.74% assigned return rate for a 19.61% annualized return rate (comparison purposes only). China Mobile has a current annual dividend yield of 3.29%. [THA-Seven Summits Research]

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