Assurant (AIZ) 11/27/09 PriceWatch Alert Up To 6.42% Downside Protection

Posted: Thursday, November 26, 2009 8:24 AM EDT

Assurant (NYSE: AIZ) closed yesterday at $31.15. So far the stock has hit a 52-week low of $16.34 and 52-week high of $33.37. Assurant stock has been showing support around 30.94 and resistance in the 31.46 range. Technical indicators for the stock are Bullish and S&P gives AIZ a positive 4 STAR (out of 5) buy rating. AIZ appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 30 covered call (AIZ AF) for a net debit in the $29.15 area. That is also the break even stock price for this trade. This covered call has a 50 day duration, provides 6.42% downside protection and a 2.92% assigned return rate for a 21.29% annualized return rate (comparison purposes only). Assurant has a current annual dividend yield of 1.95%. [FBB-Seven Summits Research]

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