Sigma Aldrich (SIAL) 11/5/09 PriceWatch Alert Technicals Showing Bullish

Posted: Thursday, November 05, 2009 8:11 AM EDT

Sigma Aldrich (NasdaqNM: SIAL) closed yesterday at $53.13. So far the stock has hit a 52-week low of $31.45 and 52-week high of $56.29. Sigma Aldrich stock has been showing support around 52.40 and resistance in the 54.32 range. Technical indicators for the stock are Bullish and S&P gives SIAL a neutral 3 STAR (out of 5) hold rating. SIAL appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 50 covered call (IAQ AJ) for a net debit in the $48.83 area. That is also the break even stock price for this trade. This covered call has a 72 day duration, provides 8.09% downside protection and a 2.40% assigned return rate for a 12.15% annualized return rate (comparison purposes only). Sigma Aldrich has a current annual dividend yield of 1.10%. [THA-Seven Summits Research]

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