Kansas City Southern (KSU) 11/3/09 PriceWatch Alert Bearish Price Movement

Posted: Tuesday, November 03, 2009 8:44 AM EDT

Kansas City Southern (NYSE: KSU) closed yesterday at $24.08. So far the stock has hit a 52-week low of $12.25 and 52-week high of $31.83. Kansas City Southern stock has been showing support around 22.99 and resistance in the 25.55 range. Technical indicators for the stock are Bearish and S&P gives KSU a positive 4 STAR (out of 5) buy rating. KSU appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Mar '10 22.50 covered call (KSU CX) for a net debit in the $20.68 area. That is also the break even stock price for this trade. This covered call has a 137 day duration, provides 14.12% downside protection and an 8.80% assigned return rate for a 23.45% annualized return rate (comparison purposes only). Kansas City Southern does not pay dividends at this time. [ATU-Seven Summits Research]

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