Valspar (VAL) Traded Flat Yesterday And Is In A Tight Support/Resistance Range

Posted: Thursday, October 15, 2009 8:48 AM EDT

Valspar (NYSE: VAL) closed yesterday at $27.26. 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 26.93 and resistance in the 27.81 range. Technical indicators for the stock are Bullish 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 an Apr '10 25 covered call (VAL DE) for a net debit in the $23.86 area. That is also the break even stock price for this trade. This covered call has an 184 day duration, provides 12.47% downside protection and a 4.78% assigned return rate for a 9.48% annualized return rate (comparison purposes only). Valspar has a current annual dividend yield of 2.19%. [THA-Seven Summits Research]

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