Landstar System (LSTR) PriceWatch Alert Could Hit 27.26% Return

Posted: Friday, July 10, 2009 8:07 AM EDT

Landstar System (NasdaqNM: LSTR) closed yesterday at $34.45. So far the stock has hit a 52-week low of $27.21 and 52-week high of $55.20. Landstar System stock has been showing support around 33.90 and resistance in the 35.42 range. Technical indicators for the stock are Bearish and S&P gives LSTR a very positive 5 STAR (out of 5) strong buy rating. LSTR appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 35 covered call (QRY AG) for a net debit in the $30.65 area. That is also the break even stock price for this trade. This covered call has a 190 day duration, provides 11.03% downside protection and a 14.19% assigned return rate for a 27.26% annualized return rate (comparison purposes only). Landstar System has a current annual dividend yield of 0.47%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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