Molina Healthcare (MOH) In Tight Support/Resistance Range

Posted: Wednesday, November 18, 2009 9:33 AM EDT

Molina Healthcare (NYSE: MOH) closed yesterday at $22.34. So far the stock has hit a 52-week low of $16.12 and 52-week high of $25.75. Molina Healthcare stock has been showing support around 21.66 and resistance in the 22.74 range. Technical indicators for the stock are Bullish and S&P gives MOH a neutral 3 STAR (out of 5) hold rating. MOH appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Mar '10 20 covered call (MOH CD) for a net debit in the $18.94 area. That is also the break even stock price for this trade. This covered call has a 122 day duration, provides 15.22% downside protection and a 5.60% assigned return rate for a 16.74% annualized return rate (comparison purposes only). Molina Healthcare does not pay dividends at this time. [WBA-Seven Summits Research]

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