CA (CA) 11/3/09 PriceWatch Alert Targets 22.97% Return

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

CA (NasdaqNM: CA) closed yesterday at $20.86. So far the stock has hit a 52-week low of $13.68 and 52-week high of $24.15. CA stock has been showing support around 20.43 and resistance in the 21.29 range. Technical indicators for the stock are Bearish and S&P gives CA a neutral 3 STAR (out of 5) hold rating. CA appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 20 covered call (CA AD) for a net debit in the $19.11 area. That is also the break even stock price for this trade. This covered call has a 74 day duration, provides 8.39% downside protection and a 4.66% assigned return rate for a 22.97% annualized return rate (comparison purposes only). CA has a current annual dividend yield of 0.75%. [ATU-Seven Summits Research]

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