Stanley Works (SWK) Trading Near Its 52 Week High With Neutral S&P 3 STARs Rating

Posted: Friday, November 20, 2009 9:15 AM EDT

Stanley Works (NYSE: SWK) closed yesterday at $49.27. So far the stock has hit a 52-week low of $22.61 and 52-week high of $51.20. Stanley Works stock has been showing support around 48.20 and resistance in the 50.12 range. S&P gives SWK a neutral 3 STAR (out of 5) hold rating. SWK appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 47.50 covered call (SWK AW) for a net debit in the $46.27 area. That is also the break even stock price for this trade. This covered call has a 57 day duration, provides 6.09% downside protection and a 2.66% assigned return rate for a 17.02% annualized return rate (comparison purposes only). Stanley Works has a current annual dividend yield of 2.62%. [FBB-Seven Summits Research]

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