Bally Technologies (BYI) PriceWatch Alert for February 9, 2010

Posted: Tuesday, February 09, 2010 8:39 AM EDT
By: Market Intelligence Center Staff

Bally Technologies (NYSE: BYI) closed yesterday at $37.96. So far the stock has hit a 52-week low of $12.91 and 52-week high of $46.74. Bally Technologies stock has been showing support around 36.85 and resistance in the 39.23 range. Technical indicators for the stock are Bearish and S&P gives BYI a positive 4 STAR (out of 5) buy rating. BYI appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at an Apr '10 35 covered call for a net debit in the $33.66 area. That is also the break even stock price for this trade. This covered call has a 67 day duration, provides 11.33% downside protection and a 3.98% assigned return rate for a 21.69% 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 BYI Jan '11 10 Call and selling the Apr '10 35 call for a $24.15 debit. The trade has a 67 day life and would provide 10.04% downside protection and a 3.52% assigned return rate for a 19.00% annualized return rate (for comparison purposes only). Bally Technologies does not pay dividends at this time. [ATU-Seven Summits Research]