Alberto Culver (ACV) PriceWatch Alert With 10.34% Downside Protection

Posted on Wednesday, August 27, 2008 8:07 AM

Alberto Culver (NYSE: ACV) closed yesterday at $26.12. So far the stock has hit a 52-week low of $21.75 and 52-week high of $28.42. Alberto Culver stock has been showing support around 25.51 and resistance in the 27.07 range. Technical indicators for the stock are Bearish and S&P gives ACV a neutral 3 STAR (out of 5) hold rating. ACV appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Dec '08 25 covered call (ACV LE) for a net debit in the $23.42 area. That is also the break even stock price for this trade. This covered call has an 115 day duration, provides 10.34% downside protection and a 6.75% assigned return rate for a 21.41% annualized return rate (comparison purposes only). Alberto Culver has a current annual dividend yield of 0.97%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]