Hasbro (HAS) PriceWatch Alert Targets 14.09% Return

Posted: Thursday, August 06, 2009 8:07 AM EDT
By: Market Intelligence Center Staff

Hasbro (NYSE: HAS) closed yesterday at $26.17. So far the stock has hit a 52-week low of $21.14 and 52-week high of $41.68. Hasbro stock has been showing support around 25.52 and resistance in the 26.94 range. Technical indicators for the stock are Bullish and S&P gives HAS a neutral 3 STAR (out of 5) hold rating. HAS appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Jan '10 25 covered call (HAS AE) for a net debit in the $23.52 area. That is also the break even stock price for this trade. This covered call has a 163 day duration, provides 10.13% downside protection and a 6.29% assigned return rate for a 14.09% annualized return rate (comparison purposes only). A lower cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the HAS Jan '11 12.50 Call (VSJ AT) and selling the Jan '10 25 call (HAS AE) for an $11.35 debit. The trade has a 163 day life and would provide 8.87% downside protection and a 10.13% assigned return rate for a 23.00% annualized return rate (for comparison purposes only). Hasbro has a current annual dividend yield of 3.05%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]