WMS Industries (WMS) 11/3/09 PriceWatch Alert Technicals Showing Bearish

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

WMS Industries (NYSE: WMS) closed yesterday at $40.47. So far the stock has hit a 52-week low of $15.48 and 52-week high of $50.11. WMS Industries stock has been showing support around 38.38 and resistance in the 42.22 range. Technical indicators for the stock are Bearish and S&P gives WMS a neutral 3 STAR (out of 5) hold rating. WMS appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Jan '10 40 covered call (WMS AH) for a net debit in the $37.62 area. That is also the break even stock price for this trade. This covered call has a 74 day duration, provides 7.04% downside protection and a 6.33% assigned return rate for a 31.20% annualized return rate (comparison purposes only). WMS Industries does not pay dividends at this time. [ATU-Seven Summits Research]

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