Moodys (MCO) 11/3/09 PriceWatch Alert With $17.80 Break Even

Posted: Tuesday, November 03, 2009 8:40 AM EDT

Moodys (NYSE: MCO) closed yesterday at $23.10. So far the stock has hit a 52-week low of $15.41 and 52-week high of $31.79. Moodys stock has been showing support around 22.43 and resistance in the 23.85 range. Technical indicators for the stock are Bearish and S&P gives MCO a neutral 3 STAR (out of 5) hold rating. MCO appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Feb '10 19 covered call (MCO BS) for a net debit in the $17.80 area. That is also the break even stock price for this trade. This covered call has a 109 day duration, provides 22.94% downside protection and a 6.74% assigned return rate for a 22.57% annualized return rate (comparison purposes only). Moodys has a current annual dividend yield of 1.65%. [ATU-Seven Summits Research]

Click Symbol For More News On: (MCO)