Ecolab (ECL) PriceWatch Alert Technicals Showing Bearish

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

Ecolab (NYSE: ECL) closed yesterday at $37.43. 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 36.86 and resistance in the 37.86 range. Technical indicators for the stock are Bearish 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 $33.73 area. That is also the break even stock price for this trade. This covered call has an 115 day duration, provides 9.89% downside protection and a 3.77% assigned return rate for an 11.95% annualized return rate (comparison purposes only). Ecolab has a current annual dividend yield of 1.48%. [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: (ECL)