Dollar Tree Stores (DLTR) 10/30/09 PriceWatch Alert At $43.76 Break Even

Posted: Friday, October 30, 2009 8:17 AM EDT

Dollar Tree Stores (NasdaqNM: DLTR) closed yesterday at $45.76. 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 44.99 and resistance in the 46.63 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 46 covered call (DTJ LS) for a net debit in the $43.76 area. That is also the break even stock price for this trade. This covered call has a 50 day duration, provides 4.37% downside protection and a 5.12% assigned return rate for a 37.37% annualized return rate (comparison purposes only). Dollar Tree does not pay dividends at this time. [FBB-Seven Summits Research]

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