Westlake Chemical (WLK) Traded Higher Yesterday And Is Just Shy Of Resistance Level

Posted: Wednesday, November 11, 2009 9:01 AM EDT

Westlake Chemical (NYSE: WLK) closed yesterday at $26.52. So far the stock has hit a 52-week low of $10.30 and 52-week high of $28.22. Westlake Chemical stock has been showing support around 25.87 and resistance in the 27.05 range. Technical indicators for the stock are Bullish and S&P gives WLK a neutral 3 STAR (out of 5) hold rating. WLK appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 25 covered call (WLK AE) for a net debit in the $23.92 area. That is also the break even stock price for this trade. This covered call has a 66 day duration, provides 9.80% downside protection and a 4.52% assigned return rate for a 24.97% annualized return rate (comparison purposes only). Westlake Chemical has a current annual dividend yield of 0.87%. [WBA-Seven Summits Research]

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