CH Robinson Worldwide (CHRW) 2/9/10 PriceWatch Alert Technicals Showing Bearish

Posted: Tuesday, February 09, 2010 8:17 AM EDT
By: Market Intelligence Center Staff

CH Robinson Worldwide (NASDAQ: CHRW) closed yesterday at $52.08. So far the stock has hit a 52-week low of $37.36 and 52-week high of $61.69. CH Robinson Worldwide stock has been showing support around 51.39 and resistance in the 53.31 range. Technical indicators for the stock are Bearish and S&P gives CHRW a positive 4 STAR (out of 5) buy rating. CHRW appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a May '10 50 covered call for a net debit in the $48.08 area. That is also the break even stock price for this trade. This covered call has a 102 day duration, provides 7.68% downside protection and a 3.99% assigned return rate for a 14.29% annualized return rate (comparison purposes only). A lower cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the CHRW Jan '11 30 Call and selling the May '10 50 call for an $18.85 debit. The trade has a 102 day life and would provide 6.20% downside protection and a 6.10% assigned return rate for a 22.00% annualized return rate (for comparison purposes only). CH Robinson Worldwide has a current annual dividend yield of 1.88%. [ATU-Seven Summits Research]