Federated Investors (FII) Approaching New 52-Week High With Bullish Technicals

Posted: Tuesday, November 17, 2009 9:19 AM EDT

Federated Investors (NYSE: FII) closed yesterday at $27.91. So far the stock has hit a 52-week low of $15.80 and 52-week high of $28.10. Federated Investors stock has been showing support around 27.58 and resistance in the 28.22 range. Technical indicators for the stock are Bullish and S&P gives FII a neutral 3 STAR (out of 5) hold rating. FII appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Apr '10 25 covered call (FII DE) for a net debit in the $24.11 area. That is also the break even stock price for this trade. This covered call has a 151 day duration, provides 13.62% downside protection and a 3.69% assigned return rate for an 8.92% annualized return rate (comparison purposes only). Federated Investors has a current annual dividend yield of 3.52%. [ATU-Seven Summits Research]

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