Warnaco Group Inc. (WRC) Listed On Investors Observer Momentum Plays List

Posted: Thursday, November 12, 2009 9:05 AM EDT

Warnaco Group Inc. (NYSE: WRC) closed yesterday at $43.56. So far the stock has hit a 52-week low of $12.22 and 52-week high of $45.75. Warnaco Group stock has been showing support around 42.36 and resistance in the 44.90 range. Technical indicators for the stock are Bullish and S&P gives WRC a neutral 3 STAR (out of 5) hold rating. WRC appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Jan '10 40 covered call (WRC AH) for a net debit in the $38.46 area. That is also the break even stock price for this trade. This covered call has a 65 day duration, provides 11.71% downside protection and a 4.00% assigned return rate for a 22.48% annualized return rate (comparison purposes only). Warnaco Group does not pay dividends at this time. [THA-Seven Summits Research]

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