Discover Financial Services (DFS) 11/5/09 PriceWatch Alert With 17.20% Downside Protection
Posted: Thursday, November 05, 2009 8:33 AM EDT
By: Market Intelligence Center Staff
Discover Financial Services (NYSE: DFS) closed yesterday at $13.95. So far the stock has hit a 52-week low of $4.73 and 52-week high of $17.36. Discover stock has been showing support around 13.52 and resistance in the 14.66 range. Technical indicators for the stock are Bearish and S&P gives DFS a very positive 5 STAR (out of 5) strong buy rating. DFS appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at an Apr '10 12.50 covered call (DFS DV) for a net debit in the $11.55 area. That is also the break even stock price for this trade. This covered call has a 163 day duration, provides 17.20% downside protection and an 8.23% assigned return rate for an 18.42% annualized return rate (comparison purposes only). Discover has a current annual dividend yield of 0.56%. [THA-Seven Summits Research]
CLICK HERE: FREE Discover (DFS) Stock ReportSee what our analysts have uncovered about Discover (DFS).