Ecolab (ECL) PriceWatch Alert Bullish Price Movement

Posted: Friday, June 26, 2009 8:07 AM EDT

Ecolab (NYSE: ECL) closed yesterday at $39.44. 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 37.15 and resistance in the 40.61 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 Aug '09 37.50 covered call (ECL HU) for a net debit in the $36.64 area. That is also the break even stock price for this trade. This covered call has a 57 day duration, provides 7.10% downside protection and a 2.35% assigned return rate for a 15.03% annualized return rate (comparison purposes only). Ecolab has a current annual dividend yield of 1.50%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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