Cephalon (CEPH) 11/6/09 PriceWatch Alert With 8.98% Downside Protection





Cephalon (NasdaqNM: CEPH) closed yesterday at $57.91. 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 56.66 and resistance in the 58.54 range. Technical indicators for the stock are Bullish 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 55 covered call (CQE AK) for a net debit in the $52.71 area. That is also the break even stock price for this trade. This covered call has a 71 day duration, provides 8.98% downside protection and a 4.34% assigned return rate for a 22.33% annualized return rate (comparison purposes only). A lower cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the CEPH Jan '11 25 Call (OYL AE) and selling the Jan '10 55 call (CQE AK) for a $28.10 debit. The trade has a 71 day life and would provide 8.31% downside protection and a 6.76% assigned return rate for a 35.00% annualized return rate (for comparison purposes only). Cephalon does not pay dividends at this time. [FBB-Seven Summits Research]



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More News For Cephalon (CEPH):

Cephalon (CEPH) Hit A 52-Week High Thursday

Friday, October 14, 2011... Cephalon (NASDAQ: CEPH) hit a new 52-Week high of $81.49 yesterday. The stock closed up $.06 (0.07%) to $81.49 on 4,771,202 shares traded......

http://www.marketintelligencecenter.com/newsbites/1308090

Cephalon (CEPH) Hits New 52 Week High of 81.43

Monday, October 10, 2011... Cephalon (NASDAQ: CEPH) hit a new 52-Week high of $81.43 so far today. Currently the stock is up $0.33 (0.41%) to $81.40 on 4,166,163 shares traded......

http://www.marketintelligencecenter.com/newsbites/1307094

European Optimism Sends Stock Futures Higher With Starbucks (SBUX) and Honeywell (HON) On The Move

Tuesday, September 27, 2011... First look... Stock futures pointed to a higher open this morning, taking a lead from strong gains in European markets and bolstered by hopes that......

http://www.marketintelligencecenter.com/newsbites/1304234

Cephalon (CEPH) Trading Near $78.26 Support Level

Thursday, August 11, 2011... Cephalon (NASDAQ:CEPH) closed Wednesday's unfavorable trading session at $79.17. In the past year, the stock has hit a 52-week low of $54.15 and......

http://www.marketintelligencecenter.com/analyfav/1293357

Cephalon (CEPH) Could Break Through $80.10 Resistance Level

Friday, August 05, 2011... Cephalon (NASDAQ:CEPH) closed Thursday's downbeat trading session at $79.09. In the past year, the stock has hit a 52-week low of $54.15 and 52-week......

http://www.marketintelligencecenter.com/analyfav/1292271


Hedged Trade Ideas For CEPH:



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