Verizon Communications (VZ) 10/26/09 PriceWatch Alert Targets 25.39% Return

Posted: Monday, October 26, 2009 8:38 AM EDT

Verizon Communications (NYSE: VZ) ended the last trading session at $28.85. So far the stock has hit a 52-week low of $24.26 and 52-week high of $34.90. Verizon Communications stock has been showing support around 28.43 and resistance in the 29.41 range. Technical indicators for the stock are Bearish and S&P gives VZ a positive 4 STAR (out of 5) buy rating. VZ appears on the Investors Observer Analysts Favorites list. For a hedged play on this stock, look at a Dec '09 29 covered call (VZ LO) for a net debit in the $27.95 area. That is also the break even stock price for this trade. This covered call has a 54 day duration, provides 3.12% downside protection and a 3.76% assigned return rate for a 25.39% annualized return rate (comparison purposes only). Verizon Communications has a current annual dividend yield of 6.55%. [ABR-Seven Summits Research]

Click Symbol For More News On: (VZ)