Stanley Works (SWK) 11/24/09 PriceWatch Alert Up To 9.05% Downside Protection

Posted: Tuesday, November 24, 2009 8:21 AM EDT

Stanley Works (NYSE: SWK) closed yesterday at $49.73. 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 48.92 and resistance in the 50.66 range. Technical indicators for the stock are Bullish and 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 an Apr '10 47.50 covered call (SWK DW) for a net debit in the $45.23 area. That is also the break even stock price for this trade. This covered call has a 144 day duration, provides 9.05% downside protection and a 5.02% assigned return rate for a 12.72% annualized return rate (comparison purposes only). Stanley Works has a current annual dividend yield of 2.68%. [ATU-Seven Summits Research]

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