Raytheon (RTN) 10/29/09 PriceWatch Alert At $43.56 Break Even

Posted: Thursday, October 29, 2009 8:38 AM EDT

Raytheon (NYSE: RTN) closed yesterday at $45.61. So far the stock has hit a 52-week low of $33.20 and 52-week high of $53.00. Raytheon stock has been showing support around 45.08 and resistance in the 46.62 range. Technical indicators for the stock are Bearish and S&P gives RTN a neutral 3 STAR (out of 5) hold rating. RTN appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Dec '09 45 covered call (RTN LI) for a net debit in the $43.56 area. That is also the break even stock price for this trade. This covered call has a 51 day duration, provides 4.49% downside protection and a 3.31% assigned return rate for a 23.66% annualized return rate (comparison purposes only). Raytheon has a current annual dividend yield of 2.70%. [THA-Seven Summits Research]

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