Dreamworks Animation (DWA) 11/3/09 PriceWatch Alert Bearish Price Movement

Posted: Tuesday, November 03, 2009 8:46 AM EDT

Dreamworks Animation (NasdaqNM: DWA) closed yesterday at $32.32. So far the stock has hit a 52-week low of $17.32 and 52-week high of $38.05. Dreamworks Animation stock has been showing support around 31.30 and resistance in the 33.12 range. Technical indicators for the stock are Bearish and S&P gives DWA a positive 4 STAR (out of 5) buy rating. DWA appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Jun '10 30 covered call (DWA FF) for a net debit in the $28.02 area. That is also the break even stock price for this trade. This covered call has a 228 day duration, provides 13.30% downside protection and a 7.07% assigned return rate for an 11.31% annualized return rate (comparison purposes only). Dreamworks Animation does not pay dividends at this time. [ATU-Seven Summits Research]

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