Newell Rubbermaid (NWL) 11/5/09 PriceWatch Alert Down To $11.58 Break Even

Posted: Thursday, November 05, 2009 8:14 AM EDT

Newell Rubbermaid (NYSE: NWL) closed yesterday at $14.23. So far the stock has hit a 52-week low of $4.51 and 52-week high of $16.10. Newell Rubbermaid stock has been showing support around 13.78 and resistance in the 14.80 range. Technical indicators for the stock are Bearish and S&P gives NWL a neutral 3 STAR (out of 5) hold rating. NWL appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jun '10 12.50 covered call (NWL FV) for a net debit in the $11.58 area. That is also the break even stock price for this trade. This covered call has a 226 day duration, provides 18.62% downside protection and a 7.94% assigned return rate for a 12.83% annualized return rate (comparison purposes only). Newell Rubbermaid has a current annual dividend yield of 1.42%. [THA-Seven Summits Research]

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