Westlake Chemical (WLK) 11/25/09 PriceWatch Alert Shows Bullish Technicals

Posted: Wednesday, November 25, 2009 8:30 AM EDT

Westlake Chemical (NYSE: WLK) closed yesterday at $27.00. So far the stock has hit a 52-week low of $10.30 and 52-week high of $28.22. Westlake Chemical stock has been showing support around 26.19 and resistance in the 27.81 range. Technical indicators for the stock are Bullish and S&P gives WLK a neutral 3 STAR (out of 5) hold rating. WLK appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Apr '10 25 covered call (WLK DE) for a net debit in the $23.20 area. That is also the break even stock price for this trade. This covered call has a 143 day duration, provides 14.07% downside protection and a 7.76% assigned return rate for a 19.80% annualized return rate (comparison purposes only). Westlake Chemical has a current annual dividend yield of 0.86%. [WBA-Seven Summits Research]

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