Dollar Tree Stores (DLTR) 10/28/09 PriceWatch Alert Bearish Price Movement
Posted: Wednesday, October 28, 2009 8:23 AM EDT
By: Market Intelligence Center Staff
Dollar Tree Stores (NasdaqNM: DLTR) closed yesterday at $45.92. So far the stock has hit a 52-week low of $32.94 and 52-week high of $51.72. Dollar Tree stock has been showing support around 44.60 and resistance in the 47.86 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 47 covered call (DTJ LU) for a net debit in the $44.22 area. That is also the break even stock price for this trade. This covered call has a 52 day duration, provides 3.70% downside protection and a 6.29% assigned return rate for a 44.13% annualized return rate (comparison purposes only). Dollar Tree does not pay dividends at this time. [WBA-Seven Summits Research]
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