Barclays Bank PLC (BCS) 11/6/09 PriceWatch Alert Could Hit 20.19% Return

Posted: Friday, November 06, 2009 8:27 AM EDT

Barclays Bank PLC (NYSE: BCS) closed yesterday at $22.02. So far the stock has hit a 52-week low of $2.75 and 52-week high of $25.68. Barclays stock has been showing support around 21.38 and resistance in the 22.76 range. Technical indicators for the stock are Bearish and S&P gives BCS a neutral 3 STAR (out of 5) hold rating. BCS appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Mar '10 20 covered call (BCS CD) for a net debit in the $18.62 area. That is also the break even stock price for this trade. This covered call has a 134 day duration, provides 15.44% downside protection and a 7.41% assigned return rate for a 20.19% annualized return rate (comparison purposes only). Barclays does not pay dividends at this time. [FBB-Seven Summits Research]

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