Wyndham Worldwide (WYN) Appears On The Investors Observer Volume Leaders List

Posted: Friday, September 03, 2010 8:31 AM EDT
By: Market Intelligence Center Staff

Wyndham Worldwide (NYSE: WYN) closed yesterday at $25.23. So far the stock has hit a 52-week low of $14.12 and 52-week high of $27.94. Wyndham Worldwide stock has been showing support around 23.98 and resistance in the 25.90 range. Technical indicators for the stock are Bullish and S&P gives WYN a weak 2 STAR (out of 5) sell rating. WYN appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Jan '11 22.50 covered call for a net debit in the $21.23 area. That is also the break even stock price for this trade. This covered call has a 141 day duration, provides 15.85% downside protection and a 5.98% assigned return rate for a 15.49% 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 WYN Jan '12 15 Call and selling the Jan '11 22.50 call for a $6.85 debit. The trade has a 141 day life and would provide 13.40% downside protection and a 9.49% assigned return rate for a 25.00% annualized return rate (for comparison purposes only). Wyndham Worldwide has a current annual dividend yield of 2.07%. [FBB-Seven Summits Research]