TIBCO Software Inc (NASDAQ: TIBX) closed Tuesday’s trading session at $19.72. In the past year, the stock has hit a 52-week low of $8.83 and 52-week high of $22.08. TIBCO Software stock has been showing support around $19.31 and resistance in the $20.21 range. Technical indicators for the stock are Neutral and S&P gives TIBX a positive 4 STARS (out of 5) buy rating. For a hedged play on this stock, look at the May ‘11 $19.00 covered call for a net debit in the $17.57 area. That is also the break-even stock price for this trade.
This covered call has a duration of 143 days, provides 10.90% downside protection and an assigned return rate of 8.14% for an annualized return rate of 20.77% (for comparison purposes only).
Source:-http://www.marketintelligencecenter.com/analyfav/1240993
