Rockwell Collins (COL) PriceWatch Alert With $37.20 Break Even

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

Rockwell Collins (NYSE: COL) closed yesterday at $40.20. So far the stock has hit a 52-week low of $27.67 and 52-week high of $54.83. Rockwell Collins stock has been showing support around 39.41 and resistance in the 41.77 range. Technical indicators for the stock are Bearish and S&P gives COL a neutral 3 STAR (out of 5) hold rating. COL appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Oct '09 40 covered call (COL JH) for a net debit in the $37.20 area. That is also the break even stock price for this trade. This covered call has a 103 day duration, provides 7.46% downside protection and a 7.53% assigned return rate for a 26.67% annualized return rate (comparison purposes only). Rockwell Collins has a current annual dividend yield of 2.27%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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