GlaxoSmithKline PLC (GSK) 11/2/09 PriceWatch Alert Technicals Showing Bullish

Posted: Monday, November 02, 2009 8:16 AM EDT

GlaxoSmithKline PLC (NYSE: GSK) ended the last trading session at $41.16. So far the stock has hit a 52-week low of $27.15 and 52-week high of $42.18. GlaxoSmithKline PLC stock has been showing support around 40.30 and resistance in the 42.20 range. Technical indicators for the stock are Bullish and S&P gives GSK a neutral 3 STAR (out of 5) hold rating. GSK appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Jan '10 40 covered call (GSK AH) for a net debit in the $38.86 area. That is also the break even stock price for this trade. This covered call has a 75 day duration, provides 5.59% downside protection and a 2.93% assigned return rate for a 14.28% annualized return rate (comparison purposes only). GlaxoSmithKline PLC has a current annual dividend yield of 4.53%. [ABR-Seven Summits Research]

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