Westlake Chemical (WLK) PriceWatch Alert Could Hit 22.51% Return

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

Westlake Chemical (NYSE: WLK) closed yesterday at $20.13. So far the stock has hit a 52-week low of $10.30 and 52-week high of $22.65. Westlake Chemical stock has been showing support around 19.53 and resistance in the 21.33 range. Technical indicators for the stock are Bullish and S&P gives WLK a neutral 3 STAR (out of 5) hold rating. WLK appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 17.50 covered call (WLK AW) for a net debit in the $15.63 area. That is also the break even stock price for this trade. This covered call has a 194 day duration, provides 22.35% downside protection and an 11.96% assigned return rate for a 22.51% annualized return rate (comparison purposes only). Westlake Chemical has a current annual dividend yield of 1.00%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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