Mastercard (MA) PriceWatch Alert Targets 46.43% Return

Posted: Wednesday, June 24, 2009 8:07 AM EDT

Mastercard (NYSE: MA) closed yesterday at $160.13. So far the stock has hit a 52-week low of $113.05 and 52-week high of $295.16. Mastercard stock has been showing support around 153.49 and resistance in the 164.17 range. Technical indicators for the stock are Bearish and S&P gives MA a very positive 5 STAR (out of 5) strong buy rating. MA appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at an Aug '09 160 covered call (MAL HL) for a net debit in the $148.83 area. That is also the break even stock price for this trade. This covered call has a 59 day duration, provides 7.06% downside protection and a 7.51% assigned return rate for a 46.43% annualized return rate (comparison purposes only). Mastercard has a current annual dividend yield of 0.37%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

Click Symbol For More News On: (MA)