BorgWarner (BWA) Down Nearly 2% But Still Showing Bullish Technicals With Neutral 3 STARs S&P Rating

Posted: Friday, November 13, 2009 9:03 AM EDT

BorgWarner (NYSE: BWA) closed yesterday at $32.10. So far the stock has hit a 52-week low of $14.62 and 52-week high of $36.78. BorgWarner stock has been showing support around 31.34 and resistance in the 33.56 range. Technical indicators for the stock are Bullish and S&P gives BWA a neutral 3 STAR (out of 5) hold rating. BWA appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 30 covered call (BWA AF) for a net debit in the $28.80 area. That is also the break even stock price for this trade. This covered call has a 64 day duration, provides 10.28% downside protection and a 4.17% assigned return rate for a 23.76% annualized return rate (comparison purposes only). BorgWarner does not pay dividends at this time. [FBB-Seven Summits Research]

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