Cephalon (CEPH) 11/3/09 PriceWatch Alert At $48.44 Break Even

Posted: Tuesday, November 03, 2009 8:32 AM EDT

Cephalon (NasdaqNM: CEPH) closed yesterday at $54.24. So far the stock has hit a 52-week low of $52.55 and 52-week high of $81.35. Cephalon stock has been showing support around 53.04 and resistance in the 55.96 range. Technical indicators for the stock are Bearish and S&P gives CEPH a positive 4 STAR (out of 5) buy rating. CEPH appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Jan '10 50 covered call (CQE AJ) for a net debit in the $48.44 area. That is also the break even stock price for this trade. This covered call has a 74 day duration, provides 10.69% downside protection and a 3.22% assigned return rate for a 15.88% annualized return rate (comparison purposes only). Cephalon does not pay dividends at this time. [ATU-Seven Summits Research]

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