Sysco (SYY) PriceWatch Alert Shows Bearish Technicals

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

Sysco (NYSE: SYY) closed yesterday at $21.80. So far the stock has hit a 52-week low of $19.39 and 52-week high of $35.00. Sysco stock has been showing support around 21.30 and resistance in the 22.80 range. Technical indicators for the stock are Bearish and S&P gives SYY a neutral 3 STAR (out of 5) hold rating. SYY appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 20 covered call (SYY AD) for a net debit in the $19.05 area. That is also the break even stock price for this trade. This covered call has a 194 day duration, provides 12.61% downside protection and a 4.99% assigned return rate for a 9.38% annualized return rate (comparison purposes only). Sysco has a current annual dividend yield of 4.23%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

Click Symbol For More News On: (SYY)