Rockwell Automation (ROK) PriceWatch Alert Shows Bullish Technicals

Posted: Monday, July 06, 2009 8:07 AM EDT

Rockwell Automation (NYSE: ROK) closed yesterday at $31.54. So far the stock has hit a 52-week low of $17.50 and 52-week high of $49.92. Rockwell Automation stock has been showing support around 31.10 and resistance in the 32.30 range. Technical indicators for the stock are Bullish and S&P gives ROK a neutral 3 STAR (out of 5) hold rating. ROK appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Oct '09 30 covered call (ROK JF) for a net debit in the $27.94 area. That is also the break even stock price for this trade. This covered call has a 103 day duration, provides 11.41% downside protection and a 7.37% assigned return rate for a 26.13% annualized return rate (comparison purposes only). Rockwell Automation has a current annual dividend yield of 3.57%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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