Gerdau (GGB) 2/9/10 PriceWatch Alert At $11.04 Break Even
Posted: Tuesday, February 09, 2010 8:42 AM EDT
By: Market Intelligence Center Staff
Gerdau (NYSE: GGB) closed yesterday at $12.99. So far the stock has hit a 52-week low of $4.63 and 52-week high of $17.85. Gerdau stock has been showing support around 12.60 and resistance in the 13.68 range. Technical indicators for the stock are Bearish. GGB appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Sep '10 12.50 covered call for a net debit in the $11.04 area. That is also the break even stock price for this trade. This covered call has a 221 day duration, provides 15.01% downside protection and a 13.22% assigned return rate for a 21.84% annualized return rate (comparison purposes only). Gerdau has a current annual dividend yield of 0.13%. [ATU-Seven Summits Research]
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