Westlake Chemical (WLK) 11/3/09 PriceWatch Alert Could Hit 21.03% Return
Posted: Tuesday, November 03, 2009 8:43 AM EDT
By: Market Intelligence Center Staff
Westlake Chemical (NYSE: WLK) closed yesterday at $25.08. So far the stock has hit a 52-week low of $10.30 and 52-week high of $28.22. Westlake Chemical stock has been showing support around 23.62 and resistance in the 25.84 range. Technical indicators for the stock are Bearish and S&P gives WLK a neutral 3 STAR (out of 5) hold rating. WLK appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 22.50 covered call (WLK AX) for a net debit in the $21.58 area. That is also the break even stock price for this trade. This covered call has a 74 day duration, provides 13.96% downside protection and a 4.26% assigned return rate for a 21.03% annualized return rate (comparison purposes only). Westlake Chemical has a current annual dividend yield of 0.92%. [ATU-Seven Summits Research]
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