Stanley Works (SWK) PriceWatch Alert With Support Around $31.91

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

Stanley Works (NYSE: SWK) closed yesterday at $32.44. So far the stock has hit a 52-week low of $22.61 and 52-week high of $49.58. Stanley Works stock has been showing support around 31.91 and resistance in the 33.47 range. Technical indicators for the stock are Bearish and S&P gives SWK a neutral 3 STAR (out of 5) hold rating. SWK appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Oct '09 30 covered call (SWK JF) for a net debit in the $28.44 area. That is also the break even stock price for this trade. This covered call has a 103 day duration, provides 12.33% downside protection and a 5.49% assigned return rate for a 19.44% annualized return rate (comparison purposes only). Stanley Works has a current annual dividend yield of 3.74%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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