McAfee (MFE) 10/29/09 PriceWatch Alert Bearish Price Movement

Posted: Thursday, October 29, 2009 8:28 AM EDT

McAfee (NYSE: MFE) closed yesterday at $42.24. 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 41.50 and resistance in the 43.44 range. Technical indicators for the stock are Bearish 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 $38.74 area. That is also the break even stock price for this trade. This covered call has a 51 day duration, provides 8.29% downside protection and a 3.25% assigned return rate for a 23.28% annualized return rate (comparison purposes only). McAfee does not pay dividends at this time. [THA-Seven Summits Research]

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