Dollar Tree Stores (DLTR) 10/23/09 PriceWatch Alert With Support Around $46.39

Posted: Friday, October 23, 2009 8:28 AM EDT

Dollar Tree Stores (NasdaqNM: DLTR) closed yesterday at $47.96. So far the stock has hit a 52-week low of $31.29 and 52-week high of $51.72. Dollar Tree stock has been showing support around 46.39 and resistance in the 49.23 range. Technical indicators for the stock are Bearish and S&P gives DLTR a positive 4 STAR (out of 5) buy rating. DLTR appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Dec '09 50 covered call (DTJ LJ) for a net debit in the $46.56 area. That is also the break even stock price for this trade. This covered call has a 57 day duration, provides 2.92% downside protection and a 7.39% assigned return rate for a 47.31% annualized return rate (comparison purposes only). Dollar Tree does not pay dividends at this time. [FBB-Seven Summits Research]

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