Snap on (SNA) 2/9/10 PriceWatch Alert Targets 6.11% Downside Protection
Posted: Tuesday, February 09, 2010 8:45 AM EDT
By: Market Intelligence Center Staff
Snap on (NYSE: SNA) closed yesterday at $40.12. So far the stock has hit a 52-week low of $20.51 and 52-week high of $44.96. Snap on stock has been showing support around 39.35 and resistance in the 41.01 range. Technical indicators for the stock are Bearish and S&P gives SNA a positive 4 STAR (out of 5) buy rating. SNA appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jun '10 40 covered call for a net debit in the $37.67 area. That is also the break even stock price for this trade. This covered call has a 130 day duration, provides 6.11% downside protection and a 6.19% assigned return rate for a 17.37% annualized return rate (comparison purposes only). Snap on has a current annual dividend yield of 2.97%. [ATU-Seven Summits Research]
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