Tesoro (TSO) 11/3/09 PriceWatch Alert Could Hit 14.62% Return

Posted: Tuesday, November 03, 2009 8:34 AM EDT

Tesoro (NYSE: TSO) closed yesterday at $14.01. So far the stock has hit a 52-week low of $6.71 and 52-week high of $19.16. Tesoro stock has been showing support around 13.32 and resistance in the 14.86 range. Technical indicators for the stock are Bearish and S&P gives TSO a neutral 3 STAR (out of 5) hold rating. TSO appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a May '10 12 covered call (TSO EL) for a net debit in the $11.11 area. That is also the break even stock price for this trade. This covered call has a 200 day duration, provides 20.70% downside protection and an 8.01% assigned return rate for a 14.62% annualized return rate (comparison purposes only). Tesoro has a current annual dividend yield of 2.70%. [ATU-Seven Summits Research]

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