Cal Maine Foods (CALM) 10/1/09 PriceWatch Alert Up To 12.33% Downside Protection

Posted: Thursday, October 01, 2009 8:17 AM EDT

Cal Maine Foods (NasdaqNM: CALM) closed yesterday at $26.77. So far the stock has hit a 52-week low of $17.01 and 52-week high of $31.68. Cal Maine Foods stock has been showing support around 25.94 and resistance in the 27.82 range. Technical indicators for the stock are Bearish. CALM appears on the Investors Observer Stocks In The News list. CALM announced Q1 results Monday morning, posting a loss of 0.16 per share. Total losses were $3.8M. CALM, which has had a 2% yield over the past year will skip paying a dividend this quarter because of the loss. For a hedged play on this stock, look at a Feb '10 25 covered call (QKM BE) for a net debit in the $23.47 area. That is also the break even stock price for this trade. This covered call has a 142 day duration, provides 12.33% downside protection and a 6.52% assigned return rate for a 16.76% annualized return rate (comparison purposes only). Cal Maine Foods has a current annual dividend yield of 2.09%. [THA-Seven Summits Research]

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