Mens Wearhouse (MW) PriceWatch Alert Up To 28.13% Downside Protection

Posted on Monday, September 08, 2008 8:07 AM

Mens Wearhouse (NYSE: MW) ended the last trading session at $22.75. So far the stock has hit a 52-week low of $15.41 and 52-week high of $52.81. Mens Wearhouse stock has been showing support around 21.45 and resistance in the 23.55 range. Technical indicators for the stock are Bullish and S&P gives MW a weak 2 STAR (out of 5) sell rating. MW appears on the Investors Observer Analysts Favorites list. For a hedged play on this stock, look at a Feb '09 17.50 covered call (MW BW) for a net debit in the $16.35 area. That is also the break even stock price for this trade. This covered call has a 166 day duration, provides 28.13% downside protection and a 7.03% assigned return rate for a 15.47% annualized return rate (comparison purposes only). Mens Wearhouse has a current annual dividend yield of 1.25%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]