Valspar (VAL) 11/27/09 PriceWatch Alert Down To $23.95 Break Even

Posted: Thursday, November 26, 2009 8:35 AM EDT

Valspar (NYSE: VAL) closed yesterday at $26.50. So far the stock has hit a 52-week low of $15.13 and 52-week high of $28.60. Valspar stock has been showing support around 26.19 and resistance in the 26.73 range. Technical indicators for the stock are Bearish and S&P gives VAL a positive 4 STAR (out of 5) buy rating. VAL appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Apr '10 25 covered call (VAL DE) for a net debit in the $23.95 area. That is also the break even stock price for this trade. This covered call has a 141 day duration, provides 9.62% downside protection and a 4.38% assigned return rate for an 11.35% annualized return rate (comparison purposes only). Valspar has a current annual dividend yield of 2.18%. [FBB-Seven Summits Research]

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