Landstar System (LSTR) PriceWatch Alert With 9.62% Downside Protection

Posted: Friday, July 17, 2009 8:07 AM EDT

Landstar System (NasdaqNM: LSTR) closed yesterday at $34.30. 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 32.41 and resistance in the 35.93 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 $31.00 area. That is also the break even stock price for this trade. This covered call has an 183 day duration, provides 9.62% downside protection and a 12.90% assigned return rate for a 25.74% annualized return rate (comparison purposes only). Landstar System has a current annual dividend yield of 0.46%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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