Hormel Foods (HRL) Ticked Slightly Higher Yesterday And Showing Bullish Technicals

Posted: Friday, October 23, 2009 9:20 AM EDT

Hormel Foods (NYSE: HRL) closed yesterday at $36.31. So far the stock has hit a 52-week low of $24.81 and 52-week high of $39.04. Hormel Foods stock has been showing support around 35.68 and resistance in the 36.72 range. Technical indicators for the stock are Bullish and S&P gives HRL a neutral 3 STAR (out of 5) hold rating. HRL appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Mar '10 35 covered call (HRL CG) for a net debit in the $34.06 area. That is also the break even stock price for this trade. This covered call has a 148 day duration, provides 6.20% downside protection and a 2.76% assigned return rate for a 6.81% annualized return rate (comparison purposes only). Hormel Foods has a current annual dividend yield of 2.08%. [FBB-Seven Summits Research]

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