Northrop Grumman (NOC) PriceWatch Alert With Support Around $43.64

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

Northrop Grumman (NYSE: NOC) closed yesterday at $44.44. So far the stock has hit a 52-week low of $33.81 and 52-week high of $72.19. Northrop Grumman stock has been showing support around 43.64 and resistance in the 46.04 range. Technical indicators for the stock are Bearish and S&P gives NOC a neutral 3 STAR (out of 5) hold rating. NOC appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Nov '09 40 covered call (NOC KH) for a net debit in the $38.64 area. That is also the break even stock price for this trade. This covered call has a 138 day duration, provides 13.05% downside protection and a 3.52% assigned return rate for a 9.31% annualized return rate (comparison purposes only). Northrop Grumman has a current annual dividend yield of 3.69%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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