Dollar Tree Stores (DLTR) 10/26/09 PriceWatch Alert Could Hit 44.08% Return

Posted: Monday, October 26, 2009 8:18 AM EDT

Dollar Tree Stores (NasdaqNM: DLTR) ended the last trading session at $47.55. 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 46.90 and resistance in the 48.44 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 49 covered call (DTJ LV) for a net debit in the $46.00 area. That is also the break even stock price for this trade. This covered call has a 54 day duration, provides 3.26% downside protection and a 6.52% assigned return rate for a 44.08% annualized return rate (comparison purposes only). Dollar Tree does not pay dividends at this time. [ABR-Seven Summits Research]

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