Universal (UVV) Showing Bullish Technicals And Trading In Tight Support/Resistance Range With Positive 4STARs S&P Rating

Posted: Wednesday, November 04, 2009 8:17 AM EDT

Universal (NYSE: UVV) closed yesterday at $42.08. So far the stock has hit a 52-week low of $25.35 and 52-week high of $45.30. Universal stock has been showing support around 40.93 and resistance in the 42.73 range. Technical indicators for the stock are Bullish and S&P gives UVV a positive 4 STAR (out of 5) buy rating. UVV appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Feb '10 40 covered call (UVV BH) for a net debit in the $37.98 area. That is also the break even stock price for this trade. This covered call has a 108 day duration, provides 9.74% downside protection and a 5.32% assigned return rate for a 17.97% annualized return rate (comparison purposes only). Universal has a current annual dividend yield of 4.42%. [WBA-Seven Summits Research]

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