Stericycle (SRCL) Trade Possibility From Investors Observer Mometum Plays List

Posted: Monday, November 16, 2009 9:29 AM EDT

Stericycle (NasdaqNM: SRCL) ended the last trading session at $54.39. So far the stock has hit a 52-week low of $44.36 and 52-week high of $61.87. Stericycle stock has been showing support around 52.68 and resistance in the 55.68 range. Technical indicators for the stock are Bullish and S&P gives SRCL a positive 4 STAR (out of 5) buy rating. SRCL appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Feb '10 55 covered call (URL BK) for a net debit in the $52.04 area. That is also the break even stock price for this trade. This covered call has a 96 day duration, provides 4.32% downside protection and a 5.69% assigned return rate for a 21.63% annualized return rate (comparison purposes only). Stericycle does not pay dividends at this time. [ABR-Seven Summits Research]

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