CIGNA (CI) 10/27/09 PriceWatch Alert With Support Around $26.41

Posted: Tuesday, October 27, 2009 8:13 AM EDT

CIGNA (NYSE: CI) closed yesterday at $27.50. So far the stock has hit a 52-week low of $8.00 and 52-week high of $33.00. CIGNA stock has been showing support around 26.41 and resistance in the 29.43 range. Technical indicators for the stock are Bearish and S&P gives CI a neutral 3 STAR (out of 5) hold rating. CI appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Jan '10 25 covered call (CI AE) for a net debit in the $23.60 area. That is also the break even stock price for this trade. This covered call has an 81 day duration, provides 14.18% downside protection and a 5.93% assigned return rate for a 26.73% annualized return rate (comparison purposes only). CIGNA has a current annual dividend yield of 0.14%. [ATU-Seven Summits Research]

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