Blue Coat Systems (BCSI) 11/3/09 PriceWatch Alert Targets 25.82% Downside Protection

Posted: Tuesday, November 03, 2009 8:36 AM EDT

Blue Coat Systems (NasdaqNM: BCSI) closed yesterday at $22.08. So far the stock has hit a 52-week low of $6.96 and 52-week high of $26.64. Blue Coat Systems stock has been showing support around 20.99 and resistance in the 23.21 range. Technical indicators for the stock are Bearish. BCSI appears on the Investors Observer Analysts Favorites list. For a hedged play on this stock, look at an Apr '10 17.50 covered call (IYU DQ) for a net debit in the $16.38 area. That is also the break even stock price for this trade. This covered call has a 165 day duration, provides 25.82% downside protection and a 6.84% assigned return rate for a 15.13% annualized return rate (comparison purposes only). Blue Coat Systems does not pay dividends at this time. [ATU-Seven Summits Research]

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