JM Smucker (SJM) 11/24/09 PriceWatch Alert With 1.63% Downside Protection

Posted: Tuesday, November 24, 2009 8:42 AM EDT

JM Smucker (NYSE: SJM) closed yesterday at $58.11. So far the stock has hit a 52-week low of $34.09 and 52-week high of $58.66. JM Smucker stock has been showing support around 57.20 and resistance in the 59.12 range. Technical indicators for the stock are Bullish and S&P gives SJM a very positive 5 STAR (out of 5) strong buy rating. SJM appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 60 covered call (SJM AL) for a net debit in the $57.16 area. That is also the break even stock price for this trade. This covered call has a 53 day duration, provides 1.63% downside protection and a 4.97% assigned return rate for a 34.22% annualized return rate (comparison purposes only). JM Smucker has a current annual dividend yield of 2.62%. [ATU-Seven Summits Research]

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