Dollar Tree Stores (DLTR) 11/5/09 PriceWatch Alert Bearish Price Movement

Posted: Thursday, November 05, 2009 8:22 AM EDT

Dollar Tree Stores (NasdaqNM: DLTR) closed yesterday at $47.29. So far the stock has hit a 52-week low of $32.94 and 52-week high of $51.72. Dollar Tree stock has been showing support around 45.58 and resistance in the 48.40 range. Technical indicators for the stock are Bearish and S&P gives DLTR a positive 4 STAR (out of 5) buy rating. DLTR appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Feb '10 50 covered call (DTJ BJ) for a net debit in the $45.24 area. That is also the break even stock price for this trade. This covered call has a 107 day duration, provides 4.33% downside protection and a 10.52% assigned return rate for a 35.89% annualized return rate (comparison purposes only). Dollar Tree does not pay dividends at this time. [THA-Seven Summits Research]

Click Symbol For More News On: (DLTR)