Chattem (CHTT) 11/3/09 PriceWatch Alert Technicals Showing Bearish

Posted: Tuesday, November 03, 2009 8:29 AM EDT

Chattem (NasdaqNM: CHTT) closed yesterday at $63.69. So far the stock has hit a 52-week low of $50.10 and 52-week high of $76.72. Chattem stock has been showing support around 62.06 and resistance in the 65.24 range. Technical indicators for the stock are Bearish and S&P gives CHTT a neutral 3 STAR (out of 5) hold rating. CHTT appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Mar '10 65 covered call (HQT CM) for a net debit in the $60.09 area. That is also the break even stock price for this trade. This covered call has a 137 day duration, provides 5.65% downside protection and an 8.17% assigned return rate for a 21.77% annualized return rate (comparison purposes only). Chattem does not pay dividends at this time. [ATU-Seven Summits Research]

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