Credit Suisse Group (CS) 11/4/09 PriceWatch Alert With 11.12% Downside Protection

Posted: Wednesday, November 04, 2009 8:06 AM EDT

Credit Suisse Group (NYSE: CS) closed yesterday at $53.96. So far the stock has hit a 52-week low of $18.61 and 52-week high of $60.08. Credit Suisse Group stock has been showing support around 52.16 and resistance in the 54.92 range. Technical indicators for the stock are Bearish and S&P gives CS a positive 4 STAR (out of 5) buy rating. CS appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Mar '10 52.50 covered call (CS CR) for a net debit in the $47.96 area. That is also the break even stock price for this trade. This covered call has a 136 day duration, provides 11.12% downside protection and a 9.47% assigned return rate for a 25.41% annualized return rate (comparison purposes only). Credit Suisse Group has a current annual dividend yield of 0.11%. [WBA-Seven Summits Research]

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