Ecolab (ECL) PriceWatch Alert Could Hit 8.39% Return
Posted: Thursday, June 11, 2009 8:07 AM EDT
By: Market Intelligence Center Staff
Ecolab (NYSE: ECL) closed yesterday at $37.80. So far the stock has hit a 52-week low of $29.27 and 52-week high of $52.16. Ecolab stock has been showing support around 36.34 and resistance in the 39.40 range. Technical indicators for the stock are Bullish and S&P gives ECL a positive 4 STAR (out of 5) buy rating. ECL appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Oct '09 35 covered call (ECL JG) for a net debit in the $34.00 area. That is also the break even stock price for this trade. This covered call has a 128 day duration, provides 10.05% downside protection and a 2.94% assigned return rate for an 8.39% annualized return rate (comparison purposes only). Ecolab has a current annual dividend yield of 1.49%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]
CLICK HERE: FREE Ecolab (ECL) Stock ReportSee what our analysts have uncovered about Ecolab (ECL).