Airgas (ARG) 2/9/10 PriceWatch Alert Targets 18.79% Return

Posted: Tuesday, February 09, 2010 8:35 AM EDT

Airgas (NYSE: ARG) closed yesterday at $60.55. So far the stock has hit a 52-week low of $26.29 and 52-week high of $62.82. Airgas stock has been showing support around 59.82 and resistance in the 61.38 range. Technical indicators for the stock are Bullish and S&P gives ARG a neutral 3 STAR (out of 5) hold rating. ARG appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Apr '10 60 covered call for a net debit in the $58.00 area. That is also the break even stock price for this trade. This covered call has a 67 day duration, provides 4.21% downside protection and a 3.45% assigned return rate for an 18.79% annualized return rate (comparison purposes only). Airgas has a current annual dividend yield of 1.65%. [ATU-Seven Summits Research]

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