WW Grainger (GWW) PriceWatch Alert Could Hit 28.16% Return

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

WW Grainger (NYSE: GWW) closed yesterday at $80.11. So far the stock has hit a 52-week low of $58.86 and 52-week high of $93.99. WW Grainger stock has been showing support around 78.73 and resistance in the 82.77 range. Technical indicators for the stock are Bullish and S&P gives GWW a neutral 3 STAR (out of 5) hold rating. GWW appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Oct '09 80 covered call (GWW JP) for a net debit in the $74.11 area. That is also the break even stock price for this trade. This covered call has a 103 day duration, provides 7.49% downside protection and a 7.95% assigned return rate for a 28.16% annualized return rate (comparison purposes only). WW Grainger has a current annual dividend yield of 2.22%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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