Cameron International (CAM) 10/27/09 PriceWatch Alert With 8.42% Downside Protection

Posted: Tuesday, October 27, 2009 8:41 AM EDT

Cameron International (NYSE: CAM) closed yesterday at $39.21. So far the stock has hit a 52-week low of $16.15 and 52-week high of $42.39. Cameron International stock has been showing support around 37.67 and resistance in the 41.95 range. Technical indicators for the stock are Bullish and S&P gives CAM a neutral 3 STAR (out of 5) hold rating. CAM appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Dec '09 37.50 covered call (CAM LT) for a net debit in the $35.91 area. That is also the break even stock price for this trade. This covered call has a 53 day duration, provides 8.42% downside protection and a 4.43% assigned return rate for a 30.49% annualized return rate (comparison purposes only). Cameron International does not pay dividends at this time. [ATU-Seven Summits Research]

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