Scholastic (SCHL) Down 2.4% Yesterday And Stock Gets Neutral 3 STARs S&P Rating

Posted: Wednesday, October 28, 2009 8:48 AM EDT

Scholastic (NasdaqNM: SCHL) closed yesterday at $25.56. So far the stock has hit a 52-week low of $9.28 and 52-week high of $26.82. Scholastic stock has been showing support around 24.61 and resistance in the 27.29 range. Technical indicators for the stock are Bullish and S&P gives SCHL a neutral 3 STAR (out of 5) hold rating. SCHL appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Mar '10 22.50 covered call (USC CX) for a net debit in the $21.46 area. That is also the break even stock price for this trade. This covered call has a 143 day duration, provides 16.04% downside protection and a 4.85% assigned return rate for a 12.37% annualized return rate (comparison purposes only). Scholastic has a current annual dividend yield of 1.17%. [WBA-Seven Summits Research]

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