Westamerica Bancorp (WABC) PriceWatch Alert With 11.38% Downside Protection

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

Westamerica Bancorp (NasdaqNM: WABC) closed yesterday at $47.45. So far the stock has hit a 52-week low of $33.08 and 52-week high of $78.51. Westamerica Bancorp stock has been showing support around 46.30 and resistance in the 49.52 range. Technical indicators for the stock are Bearish and S&P gives WABC a neutral 3 STAR (out of 5) hold rating. WABC appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Oct '09 45 covered call (WQF JI) for a net debit in the $42.05 area. That is also the break even stock price for this trade. This covered call has a 103 day duration, provides 11.38% downside protection and a 7.02% assigned return rate for a 24.86% annualized return rate (comparison purposes only). Westamerica Bancorp has a current annual dividend yield of 2.78%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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