Universal (UVV) PriceWatch Alert At $28.91 Break Even

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

Universal (NYSE: UVV) closed yesterday at $33.71. So far the stock has hit a 52-week low of $25.35 and 52-week high of $56.00. Universal stock has been showing support around 32.90 and resistance in the 34.92 range. Technical indicators for the stock are Bullish and S&P gives UVV a positive 4 STAR (out of 5) buy rating. UVV appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Nov '09 30 covered call (UVV KF) for a net debit in the $28.91 area. That is also the break even stock price for this trade. This covered call has a 138 day duration, provides 14.24% downside protection and a 3.77% assigned return rate for a 9.97% annualized return rate (comparison purposes only). Universal has a current annual dividend yield of 5.44%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

Click Symbol For More News On: (UVV)