Valspar (VAL) Could Be On The Move Today

Posted: Friday, October 02, 2009 9:10 AM EDT

Valspar (NYSE: VAL) closed yesterday at $26.52. So far the stock has hit a 52-week low of $14.47 and 52-week high of $28.60. Valspar stock has been showing support around 25.93 and resistance in the 27.69 range. Technical indicators for the stock are Bearish and S&P gives VAL a neutral 3 STAR (out of 5) hold rating. VAL appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 25 covered call (VAL AE) for a net debit in the $24.07 area. That is also the break even stock price for this trade. This covered call has a 106 day duration, provides 9.24% downside protection and a 3.86% assigned return rate for a 13.30% annualized return rate (comparison purposes only). Valspar has a current annual dividend yield of 2.16%. [FBB-Seven Summits Research]

Click Symbol For More News On: (VAL)