Rochester, NY 7/16/2009 12:33:09 AM
QCOM - Qualcomm PriceWatch Alert With 8.52% Downside Protection
QUALCOMM Incorporated
QUALCOMM Incorporated, QCOM
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Qualcomm ended the last trading session at $43.44. So far the stock has hit a 52-week low of $28.16 and 52-week high of $56.88. Qualcomm stock has been showing support around 42.48 and resistance in the 44.08 range. Technical indicators for the stock are Bearish and S&P gives QCOM a weak 2 STAR (out of 5) sell rating. QCOM appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at an Oct '09 42.50 covered call (AAO JV) for a net debit in the $39.74 area. That is also the break even stock price for this trade. This covered call has a 96 day duration, provides 8.52% downside protection and a 6.95% assigned return rate for a 26.41% 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.
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