Rockwell Automation (ROK) 11/3/09 PriceWatch Alert Targets 6.58% Downside Protection
Posted: Tuesday, November 03, 2009 8:33 AM EDT
By: Market Intelligence Center Staff
Rockwell Automation (NYSE: ROK) closed yesterday at $40.28. So far the stock has hit a 52-week low of $17.50 and 52-week high of $45.12. Rockwell Automation stock has been showing support around 38.29 and resistance in the 42.47 range. Technical indicators for the stock are Bearish and S&P gives ROK a neutral 3 STAR (out of 5) hold rating. ROK appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 40 covered call (ROK AH) for a net debit in the $37.63 area. That is also the break even stock price for this trade. This covered call has a 74 day duration, provides 6.58% downside protection and a 6.30% assigned return rate for a 31.07% annualized return rate (comparison purposes only). Rockwell Automation has a current annual dividend yield of 2.70%. [ATU-Seven Summits Research]
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