Cooper Tire and Rubber (CTB) 1/6/10 PriceWatch Alert Targets 14.89% Return

Posted: Wednesday, January 06, 2010 8:13 AM EDT

Cooper Tire and Rubber (NYSE: CTB) closed yesterday at $20.48. So far the stock has hit a 52-week low of $2.96 and 52-week high of $20.98. Cooper stock has been showing support around 19.28 and resistance in the 21.58 range. Technical indicators for the stock are Bullish and S&P gives CTB a positive 4 STAR (out of 5) buy rating. CTB appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a May '10 17.50 covered call for a net debit in the $16.58 area. That is also the break even stock price for this trade. This covered call has a 136 day duration, provides 19.04% downside protection and a 5.55% assigned return rate for a 14.89% annualized return rate (comparison purposes only). Cooper has a current annual dividend yield of 2.09%. [WBA-Seven Summits Research]

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