Chattem (CHTT) 11/6/09 PriceWatch Alert With Support Around $62.52

Posted: Friday, November 06, 2009 8:35 AM EDT

Chattem (NasdaqNM: CHTT) closed yesterday at $63.85. So far the stock has hit a 52-week low of $50.10 and 52-week high of $74.12. Chattem stock has been showing support around 62.52 and resistance in the 65.72 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 $60.25 area. That is also the break even stock price for this trade. This covered call has a 134 day duration, provides 5.64% downside protection and a 7.88% assigned return rate for a 21.47% annualized return rate (comparison purposes only). Chattem does not pay dividends at this time. [FBB-Seven Summits Research]

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