Merck (MRK) 10/30/09 PriceWatch Alert Support Down To $30.28

Posted: Friday, October 30, 2009 8:10 AM EDT

Merck (NYSE: MRK) closed yesterday at $31.31. So far the stock has hit a 52-week low of $20.05 and 52-week high of $34.18. Merck stock has been showing support around 30.28 and resistance in the 32.54 range. Technical indicators for the stock are Bearish and S&P gives MRK a neutral 3 STAR (out of 5) hold rating. MRK appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Dec '09 31 covered call (MZR LE) for a net debit in the $30.01 area. That is also the break even stock price for this trade. This covered call has a 50 day duration, provides 4.15% downside protection and a 3.30% assigned return rate for a 24.08% annualized return rate (comparison purposes only). Merck has a current annual dividend yield of 4.69%. [FBB-Seven Summits Research]

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