RadioShack (RSH) 11/5/09 PriceWatch Alert Bullish Price Movement

Posted: Thursday, November 05, 2009 8:18 AM EDT

RadioShack (NYSE: RSH) closed yesterday at $17.16. So far the stock has hit a 52-week low of $6.47 and 52-week high of $18.33. RadioShack stock has been showing support around 16.74 and resistance in the 17.70 range. Technical indicators for the stock are Bullish and S&P gives RSH a weak 2 STAR (out of 5) sell rating. RSH appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at an Apr '10 15 covered call (RSH DC) for a net debit in the $13.96 area. That is also the break even stock price for this trade. This covered call has a 163 day duration, provides 18.65% downside protection and a 7.45% assigned return rate for a 16.68% annualized return rate (comparison purposes only). RadioShack has a current annual dividend yield of 1.50%. [THA-Seven Summits Research]

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