Search

 

TJX Companies (TJX) 2/8/10 PriceWatch Alert With 4.83% Downside Protection

Posted: Monday, February 08, 2010 8:08 AM EDT

TJX Companies (NYSE: TJX) ended the last trading session at $38.31. So far the stock has hit a 52-week low of $20.70 and 52-week high of $40.64. TJX stock has been showing support around 37.38 and resistance in the 38.96 range. Technical indicators for the stock are Bullish and S&P gives TJX a neutral 3 STAR (out of 5) hold rating. TJX appears on the Investors Observer Analysts Favorites list. For a hedged play on this stock, look at a Jul '10 40 covered call for a net debit in the $36.46 area. That is also the break even stock price for this trade. This covered call has a 159 day duration, provides 4.83% downside protection and a 9.71% assigned return rate for a 22.29% 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 TJX Jan '11 30 Call and selling the Jul '10 40 call for a $7.65 debit. The trade has a 159 day life and would provide 1.72% downside protection and a 30.72% assigned return rate for a 71.00% annualized return rate (for comparison purposes only). TJX has a current annual dividend yield of 1.24%. [ABR-Seven Summits Research]

Click Symbol For More News On: (TJX)