Global Payments (GPN) 11/3/09 PriceWatch Alert Could Hit 7.77% Return

Posted: Tuesday, November 03, 2009 8:35 AM EDT

Global Payments (NYSE: GPN) closed yesterday at $49.58. So far the stock has hit a 52-week low of $27.48 and 52-week high of $51.40. Global Payments stock has been showing support around 48.35 and resistance in the 50.37 range. Technical indicators for the stock are Bullish and S&P gives GPN a very positive 5 STAR (out of 5) strong buy rating. GPN appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Feb '10 45 covered call (GPN BI) for a net debit in the $43.98 area. That is also the break even stock price for this trade. This covered call has a 109 day duration, provides 11.29% downside protection and a 2.32% assigned return rate for a 7.77% annualized return rate (comparison purposes only). Global Payments has a current annual dividend yield of 0.16%. [ATU-Seven Summits Research]

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