BancorpSouth (BXS) 11/3/09 PriceWatch Alert With $21.04 Break Even

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

BancorpSouth (NYSE: BXS) closed yesterday at $22.39. So far the stock has hit a 52-week low of $15.60 and 52-week high of $25.30. BancorpSouth stock has been showing support around 21.56 and resistance in the 23.18 range. Technical indicators for the stock are Bearish and S&P gives BXS a weak 2 STAR (out of 5) sell rating. BXS appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Apr '10 22.50 covered call (BXS DX) for a net debit in the $21.04 area. That is also the break even stock price for this trade. This covered call has a 165 day duration, provides 6.03% downside protection and a 6.94% assigned return rate for a 15.35% annualized return rate (comparison purposes only). BancorpSouth has a current annual dividend yield of 3.75%. [ATU-Seven Summits Research]

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