Snap on (SNA) PriceWatch Alert Up To 13.24% Return

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

Snap on (NYSE: SNA) closed yesterday at $27.88. So far the stock has hit a 52-week low of $20.51 and 52-week high of $60.32. Snap on stock has been showing support around 27.17 and resistance in the 28.69 range. Technical indicators for the stock are Bearish and S&P gives SNA a positive 4 STAR (out of 5) buy rating. SNA appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Dec '09 25 covered call (SNA LE) for a net debit in the $23.58 area. That is also the break even stock price for this trade. This covered call has a 166 day duration, provides 15.42% downside protection and a 6.02% assigned return rate for a 13.24% annualized return rate (comparison purposes only). Snap on has a current annual dividend yield of 4.11%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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