Nalco Holding (NLC) Hit New 52-Week High Yesterday

Posted: Friday, November 13, 2009 9:10 AM EDT

Nalco Holding (NYSE: NLC) closed yesterday at $23.49. So far the stock has hit a 52-week low of $7.80 and 52-week high of $23.74. Nalco stock has been showing support around 23.14 and resistance in the 23.92 range. Technical indicators for the stock are Bullish and S&P gives NLC a neutral 3 STAR (out of 5) hold rating. NLC appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Mar '10 22.50 covered call (NLC CX) for a net debit in the $21.04 area. That is also the break even stock price for this trade. This covered call has a 127 day duration, provides 10.43% downside protection and a 6.94% assigned return rate for a 19.94% annualized return rate (comparison purposes only). Nalco has a current annual dividend yield of 0.61%. [FBB-Seven Summits Research]

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