Airgas (ARG) 11/25/09 PriceWatch Alert With $43.85 Break Even

Posted: Wednesday, November 25, 2009 8:29 AM EDT

Airgas (NYSE: ARG) closed yesterday at $46.95. So far the stock has hit a 52-week low of $26.29 and 52-week high of $51.00. Airgas stock has been showing support around 45.74 and resistance in the 48.16 range. Technical indicators for the stock are Neutral and S&P gives ARG a neutral 3 STAR (out of 5) hold rating. ARG appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 45 covered call (ARG AI) for a net debit in the $43.85 area. That is also the break even stock price for this trade. This covered call has a 52 day duration, provides 6.60% downside protection and a 2.62% assigned return rate for an 18.41% annualized return rate (comparison purposes only). Airgas has a current annual dividend yield of 1.53%. [WBA-Seven Summits Research]

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