Under Armour (UA) 11/3/09 PriceWatch Alert Down To $23.80 Break Even

Posted: Tuesday, November 03, 2009 8:29 AM EDT

Under Armour (NYSE: UA) closed yesterday at $26.90. So far the stock has hit a 52-week low of $11.94 and 52-week high of $33.31. Under Armour stock has been showing support around 25.89 and resistance in the 27.91 range. Technical indicators for the stock are Bearish and S&P gives UA a very positive 5 STAR (out of 5) strong buy rating. UA appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Jan '10 25 covered call (UA AE) for a net debit in the $23.80 area. That is also the break even stock price for this trade. This covered call has a 74 day duration, provides 11.52% downside protection and a 5.04% assigned return rate for a 24.87% annualized return rate (comparison purposes only). Under Armour does not pay dividends at this time. [ATU-Seven Summits Research]

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