Sigma Aldrich (SIAL) PriceWatch Alert With $43.56 Break Even

Posted: Monday, June 29, 2009 8:07 AM EDT

Sigma Aldrich (NasdaqNM: SIAL) ended the last trading session at $49.66. So far the stock has hit a 52-week low of $31.45 and 52-week high of $62.74. Sigma Aldrich stock has been showing support around 49.17 and resistance in the 50.25 range. Technical indicators for the stock are Bullish and S&P gives SIAL a neutral 3 STAR (out of 5) hold rating. SIAL appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Oct '09 45 covered call (IAQ JI) for a net debit in the $43.56 area. That is also the break even stock price for this trade. This covered call has an 110 day duration, provides 12.28% downside protection and a 3.31% assigned return rate for a 10.97% annualized return rate (comparison purposes only). Sigma Aldrich has a current annual dividend yield of 1.19%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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