Zions Bancorporation (ZION) Appears On The Investors Observer Volume Leaders List

Posted: Friday, September 03, 2010 8:26 AM EDT
By: Market Intelligence Center Staff

Zions Bancorporation (NASDAQ: ZION) closed yesterday at $19.71. So far the stock has hit a 52-week low of $12.50 and 52-week high of $30.29. Zions Bancorporation stock has been showing support around 19.05 and resistance in the 20.07 range. Technical indicators for the stock are Bearish and S&P gives ZION a neutral 3 STAR (out of 5) hold rating. ZION appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Jan '11 17.50 covered call for a net debit in the $16.16 area. That is also the break even stock price for this trade. This covered call has a 141 day duration, provides 18.01% downside protection and an 8.29% assigned return rate for a 21.47% 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 ZION Jan '12 7.50 Call and selling the Jan '11 17.50 call for a $9.00 debit. The trade has a 141 day life and would provide 16.29% downside protection and an 11.11% assigned return rate for a 29.00% annualized return rate (for comparison purposes only). Zions Bancorporation has a current annual dividend yield of 0.22%. [FBB-Seven Summits Research]