National Oilwell Varco (NOV) PriceWatch Alert Could Hit 53.92% Return

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

National Oilwell Varco (NYSE: NOV) ended the last trading session at $61.86. So far the stock has hit a 52-week low of $49.44 and 52-week high of $92.70. National Oilwell Varco stock has been showing support around 58.45 and resistance in the 65.07 range. Technical indicators for the stock are Bearish and S&P gives NOV a positive 4 STAR (out of 5) buy rating. NOV appears on the Investors Observer Analysts Favorites list. For a hedged play on this stock, look at a Jan '09 65 covered call (NOV AM) for a net debit in the $54.46 area. That is also the break even stock price for this trade. This covered call has a 131 day duration, provides 11.96% downside protection and a 19.35% assigned return rate for a 53.92% annualized return rate (comparison purposes only). National Oilwell Varco does not pay dividends at this time. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]