Valspar (VAL) Appears On The Investors Observer Hedged Dividend Income List

Posted: Wednesday, November 11, 2009 8:36 AM EDT

Valspar (NYSE: VAL) closed yesterday at $27.60. So far the stock has hit a 52-week low of $14.47 and 52-week high of $28.60. Valspar stock has been showing support around 27.17 and resistance in the 27.97 range. Technical indicators for the stock are Bullish and S&P gives VAL a neutral 3 STAR (out of 5) hold rating. VAL appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Apr '10 25 covered call (VAL DE) for a net debit in the $24.10 area. That is also the break even stock price for this trade. This covered call has a 157 day duration, provides 12.68% downside protection and a 3.73% assigned return rate for an 8.68% annualized return rate (comparison purposes only). Valspar has a current annual dividend yield of 2.18%. [WBA-Seven Summits Research]

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