Watsco (WSO) PriceWatch Alert Targets 12.06% Downside Protection
Posted: Monday, July 06, 2009 8:07 AM EDT
By: Market Intelligence Center Staff
Watsco (NYSE: WSO) closed yesterday at $47.27. So far the stock has hit a 52-week low of $29.34 and 52-week high of $61.08. Watsco stock has been showing support around 46.54 and resistance in the 48.74 range. Technical indicators for the stock are Neutral and S&P gives WSO a neutral 3 STAR (out of 5) hold rating. WSO appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Nov '09 45 covered call (WSO KI) for a net debit in the $41.57 area. That is also the break even stock price for this trade. This covered call has a 138 day duration, provides 12.06% downside protection and an 8.25% assigned return rate for a 21.82% annualized return rate (comparison purposes only). Watsco has a current annual dividend yield of 3.89%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]
CLICK HERE: FREE Watsco (WSO) Stock ReportSee what our analysts have uncovered about Watsco (WSO).