Cincinnati Financial Corp. (CINF) Up Over 1% Yesterday And Shows Up On Investors Observer Hedged Dividend Income List

Posted: Friday, November 06, 2009 9:20 AM EDT

Cincinnati Financial Corp. (NasdaqNM: CINF) closed yesterday at $25.87. So far the stock has hit a 52-week low of $17.84 and 52-week high of $31.85. Cincinnati Financial stock has been showing support around 25.48 and resistance in the 26.08 range. Technical indicators for the stock are Bullish and S&P gives CINF a weak 2 STAR (out of 5) sell rating. CINF appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Mar '10 25 covered call (QXI CE) for a net debit in the $23.97 area. That is also the break even stock price for this trade. This covered call has a 134 day duration, provides 7.34% downside protection and a 4.30% assigned return rate for an 11.70% annualized return rate (comparison purposes only). Cincinnati Financial has a current annual dividend yield of 6.16%. [FBB-Seven Summits Research]

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