Valspar (VAL) PriceWatch Alert Support At Around $22.24

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

Valspar (NYSE: VAL) closed yesterday at $22.58. So far the stock has hit a 52-week low of $14.47 and 52-week high of $24.95. Valspar stock has been showing support around 22.24 and resistance in the 22.90 range. Technical indicators for the stock are Bullish and S&P gives VAL a neutral 3 STAR (out of 5) hold rating. VAL appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 22.50 covered call (VAL AX) for a net debit in the $20.43 area. That is also the break even stock price for this trade. This covered call has a 194 day duration, provides 9.52% downside protection and a 10.13% assigned return rate for a 19.06% annualized return rate (comparison purposes only). Valspar has a current annual dividend yield of 2.64%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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