Rochester, NY 7/14/2009 11:39:54 PM
NOK - Nokia PriceWatch Alert Down To $12.63 Break Even
Nokia Corp.
Nokia Corp., NOK
WhisperFromWallStreet.com offers daily stock alerts to subscribers. Sign up for our free alerts newsletter.
Nokia closed yesterday at $14.83. So far the stock has hit a 52-week low of $8.47 and 52-week high of $28.34. Nokia stock has been showing support around 14.09 and resistance in the 15.31 range. Technical indicators for the stock are Bullish and S&P gives NOK a neutral 3 STAR (out of 5) hold rating. NOK appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Jan '10 14 covered call (NOK AN) for a net debit in the $12.63 area. That is also the break even stock price for this trade. This covered call has an 186 day duration, provides 14.83% downside protection and a 10.85% assigned return rate for a 21.29% 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 NOK Jan '11 5 Call (VOK AA) and selling the Jan '10 14 call (NOK AN) for a $7.80 debit. The trade has an 186 day life and would provide 13.69% downside protection and a 15.38% assigned return rate for a 30.00% annualized return rate (for comparison purposes only). Nokia has a current annual dividend yield of 2.61%
About WhisperFromWallStreet.com
WhisperfromWallStreet.com is a FREE award winning newsletter that specializes in sending alerts to our subscribers on stocks we think are going to run, why we think so, as well as teaching you how to become a better trader. We scan hundreds of stocks a day to find those that meet our criteria and when we find one, we send you an alert.
Sign up for our FREE alerts newsletter at WhisperfromWallStreet.com
Disclaimer: Full disclaimer at http://whisperfromwallstreet.com/disclaimer.php
