Aetna (AET) 11/2/09 PriceWatch Alert Bearish Price Movement

Posted: Monday, November 02, 2009 8:12 AM EDT

Aetna (NYSE: AET) ended the last trading session at $26.03. So far the stock has hit a 52-week low of $14.21 and 52-week high of $34.87. Aetna stock has been showing support around 25.38 and resistance in the 27.24 range. Technical indicators for the stock are Bearish and S&P gives AET a positive 4 STAR (out of 5) buy rating. AET appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Jan '10 22.50 covered call (AET AX) for a net debit in the $21.63 area. That is also the break even stock price for this trade. This covered call has a 75 day duration, provides 16.90% downside protection and a 4.02% assigned return rate for a 19.57% annualized return rate (comparison purposes only). Aetna has a current annual dividend yield of 0.16%. [ABR-Seven Summits Research]

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