Hornbeck Offshore Services (HOS) 11/3/09 PriceWatch Alert With $20.93 Break Even

Posted: Tuesday, November 03, 2009 8:47 AM EDT

Hornbeck Offshore Services (NYSE: HOS) closed yesterday at $24.43. So far the stock has hit a 52-week low of $10.28 and 52-week high of $30.76. Hornbeck Offshore Services stock has been showing support around 22.84 and resistance in the 25.74 range. Technical indicators for the stock are Bearish and S&P gives HOS a neutral 3 STAR (out of 5) hold rating. HOS appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Mar '10 22.50 covered call (HOS CX) for a net debit in the $20.93 area. That is also the break even stock price for this trade. This covered call has a 137 day duration, provides 14.33% downside protection and a 7.50% assigned return rate for a 19.98% annualized return rate (comparison purposes only). Hornbeck Offshore Services does not pay dividends at this time. [ATU-Seven Summits Research]

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