China Telecom (CHA) 11/3/09 PriceWatch Alert At $38.51 Break Even

Posted: Tuesday, November 03, 2009 8:37 AM EDT

China Telecom (NYSE: CHA) closed yesterday at $44.61. So far the stock has hit a 52-week low of $28.36 and 52-week high of $56.41. China Telecom stock has been showing support around 43.31 and resistance in the 45.93 range. Technical indicators for the stock are Bearish and S&P gives CHA a neutral 3 STAR (out of 5) hold rating. CHA appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Mar '10 40 covered call (CHA CH) for a net debit in the $38.51 area. That is also the break even stock price for this trade. This covered call has a 137 day duration, provides 13.67% downside protection and a 3.87% assigned return rate for a 10.31% annualized return rate (comparison purposes only). China Telecom has a current annual dividend yield of 2.18%. [ATU-Seven Summits Research]

Click Symbol For More News On: (CHA)