Zions Bancorporation (ZION) 10/16/09 PriceWatch Alert Support Down To $18.05

Posted: Friday, October 16, 2009 8:24 AM EDT

Zions Bancorporation (NasdaqNM: ZION) closed yesterday at $18.82. So far the stock has hit a 52-week low of $5.90 and 52-week high of $45.00. Zions Bancorporation stock has been showing support around 18.05 and resistance in the 19.37 range. Technical indicators for the stock are Bullish and S&P gives ZION a neutral 3 STAR (out of 5) hold rating. ZION appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at an Apr '10 15 covered call (ZNQ DC) for a net debit in the $13.62 area. That is also the break even stock price for this trade. This covered call has an 183 day duration, provides 27.63% downside protection and a 10.13% assigned return rate for a 20.21% 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 ZION Jan '11 5 Call (OIO AA) and selling the Apr '10 15 call (ZNQ DC) for an $8.95 debit. The trade has an 183 day life and would provide 25.88% downside protection and an 11.73% assigned return rate for a 23.00% annualized return rate (for comparison purposes only). Zions Bancorporation has a current annual dividend yield of 0.22%. [FBB-Seven Summits Research]

Click Symbol For More News On: (ZION)