Snap on (SNA) Showing Bullish Technicals On Investors Observer Hedged Dividend Income List

Posted: Thursday, November 12, 2009 9:28 AM EDT

Snap on (NYSE: SNA) closed yesterday at $38.82. So far the stock has hit a 52-week low of $20.51 and 52-week high of $41.65. Snap on stock has been showing support around 37.95 and resistance in the 39.91 range. Technical indicators for the stock are Bullish and S&P gives SNA a positive 4 STAR (out of 5) buy rating. SNA appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Mar '10 35 covered call (SNA CG) for a net debit in the $33.82 area. That is also the break even stock price for this trade. This covered call has a 128 day duration, provides 12.88% downside protection and a 3.49% assigned return rate for a 9.95% annualized return rate (comparison purposes only). Snap on has a current annual dividend yield of 3.08%. [THA-Seven Summits Research]

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