Scholastic (SCHL) 11/3/09 PriceWatch Alert Technicals Showing Bullish

Posted: Tuesday, November 03, 2009 8:29 AM EDT

Scholastic (NasdaqNM: SCHL) closed yesterday at $24.89. So far the stock has hit a 52-week low of $9.28 and 52-week high of $26.82. Scholastic stock has been showing support around 24.21 and resistance in the 25.77 range. Technical indicators for the stock are Bullish and S&P gives SCHL a neutral 3 STAR (out of 5) hold rating. SCHL appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Mar '10 22.50 covered call (USC CX) for a net debit in the $21.09 area. That is also the break even stock price for this trade. This covered call has a 137 day duration, provides 15.27% downside protection and a 6.69% assigned return rate for a 17.81% annualized return rate (comparison purposes only). Scholastic has a current annual dividend yield of 1.15%. [ATU-Seven Summits Research]

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