Scotts Miracle Gro (SMG) 11/25/09 PriceWatch Alert With Support Around $39.93

Posted: Wednesday, November 25, 2009 8:41 AM EDT

Scotts Miracle Gro (NYSE: SMG) closed yesterday at $40.60. So far the stock has hit a 52-week low of $24.89 and 52-week high of $44.25. Scotts Miracle Gro stock has been showing support around 39.93 and resistance in the 41.51 range. Technical indicators for the stock are Bearish and S&P gives SMG a neutral 3 STAR (out of 5) hold rating. SMG appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 40 covered call (SMG AH) for a net debit in the $38.55 area. That is also the break even stock price for this trade. This covered call has a 52 day duration, provides 5.05% downside protection and a 3.76% assigned return rate for a 26.40% annualized return rate (comparison purposes only). Scotts Miracle Gro has a current annual dividend yield of 1.22%. [WBA-Seven Summits Research]

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