McCormick (MKC) Just Shy Of 52 Week High With Bullish Technicals

Posted: Wednesday, November 11, 2009 9:23 AM EDT

McCormick (NYSE: MKC) closed yesterday at $35.70. So far the stock has hit a 52-week low of $28.08 and 52-week high of $35.80. McCormick stock has been showing support around 35.21 and resistance in the 36.05 range. Technical indicators for the stock are Bullish and S&P gives MKC a neutral 3 STAR (out of 5) hold rating. MKC appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Mar '10 35 covered call (MKC CG) for a net debit in the $34.05 area. That is also the break even stock price for this trade. This covered call has a 129 day duration, provides 4.62% downside protection and a 2.79% assigned return rate for a 7.89% annualized return rate (comparison purposes only). McCormick has a current annual dividend yield of 2.70%. [WBA-Seven Summits Research]

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