Universal Health Services (UHS) PriceWatch Alert Down To $43.13 Break Even

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

Universal Health Services (NYSE: UHS) closed yesterday at $48.43. So far the stock has hit a 52-week low of $30.43 and 52-week high of $69.25. Universal Health Services stock has been showing support around 47.12 and resistance in the 49.44 range. Technical indicators for the stock are Bearish and S&P gives UHS a neutral 3 STAR (out of 5) hold rating. UHS appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Oct '09 45 covered call (UHS JI) for a net debit in the $43.13 area. That is also the break even stock price for this trade. This covered call has a 103 day duration, provides 10.94% downside protection and a 4.34% assigned return rate for a 15.36% annualized return rate (comparison purposes only). Universal Health Services has a current annual dividend yield of 0.65%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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