Career Education (CECO) 9/23/09 PriceWatch Alert Could Hit 24.16% Return

Posted: Wednesday, September 23, 2009 8:16 AM EDT

Career Education (NasdaqNM: CECO) closed yesterday at $25.00. So far the stock has hit a 52-week low of $12.44 and 52-week high of $26.53. Career Education stock has been showing support around 24.35 and resistance in the 25.55 range. Technical indicators for the stock are Bullish and S&P gives CECO a weak 2 STAR (out of 5) sell rating. CECO appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at an Apr '10 25 covered call (CUY DE) for a net debit in the $22.00 area. That is also the break even stock price for this trade. This covered call has a 206 day duration, provides 12.00% downside protection and a 13.64% assigned return rate for a 24.16% annualized return rate (comparison purposes only). Career Education does not pay dividends at this time. [WBA-Seven Summits Research]

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