News Corp (NWS) 10/29/09 PriceWatch Alert Targets 15.51% Downside Protection

Posted: Thursday, October 29, 2009 8:40 AM EDT

News Corp (NasdaqNM: NWS) closed yesterday at $13.54. So far the stock has hit a 52-week low of $5.61 and 52-week high of $15.24. News Corp stock has been showing support around 13.07 and resistance in the 14.43 range. Technical indicators for the stock are Bearish and S&P gives NWS a neutral 3 STAR (out of 5) hold rating. NWS appears on the Investors Observer Analysts Favorites list. For a hedged play on this stock, look at an Apr '10 12.50 covered call (NWS DV) for a net debit in the $11.44 area. That is also the break even stock price for this trade. This covered call has a 170 day duration, provides 15.51% downside protection and a 9.27% assigned return rate for a 19.89% annualized return rate (comparison purposes only). News Corp has a current annual dividend yield of 0.84%. [THA-Seven Summits Research]

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