Supervalu (SVU) Sold Off 2% Yesterday And Stock Has Weak 2 STARs S&P Rating

Posted: Wednesday, October 28, 2009 8:41 AM EDT

Supervalu (NYSE: SVU) closed yesterday at $16.01. So far the stock has hit a 52-week low of $8.59 and 52-week high of $20.38. Supervalu stock has been showing support around 15.72 and resistance in the 16.56 range. Technical indicators for the stock are Bullish and S&P gives SVU a weak 2 STAR (out of 5) sell rating. SVU appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Apr '10 15 covered call (SVU DC) for a net debit in the $13.91 area. That is also the break even stock price for this trade. This covered call has a 171 day duration, provides 13.12% downside protection and a 7.84% assigned return rate for a 16.73% annualized return rate (comparison purposes only). Supervalu has a current annual dividend yield of 4.23%. [WBA-Seven Summits Research]

Click Symbol For More News On: (SVU)