Cliffs Natural Resources (CLF) PriceWatch Alert Support Down To $20.91

Posted: Thursday, May 14, 2009 8:07 AM EDT

Cliffs Natural Resources (NYSE: CLF) closed yesterday at $23.18. So far the stock has hit a 52-week low of $11.80 and 52-week high of $121.95. Cliffs Natural Resources stock has been showing support around 20.91 and resistance in the 27.03 range. Technical indicators for the stock are Bearish. CLF appears on the Investors Observer Stocks In The News list. BMO Capital Markets downgraded CLF Wednesday to Market Perform from Outperform. For a hedged play on this stock, look at an Oct '09 12.50 covered call (CLF JQ) for a net debit in the $11.58 area. That is also the break even stock price for this trade. This covered call has a 156 day duration, provides 50.04% downside protection and a 7.94% assigned return rate for an 18.59% annualized return rate (comparison purposes only). Cliffs Natural Resources has a current annual dividend yield of 1.22%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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