BlackRock (BLK) 11/6/09 PriceWatch Alert Could Hit 48.50% Return

Posted: Friday, November 06, 2009 8:45 AM EDT

BlackRock (NYSE: BLK) closed yesterday at $226.61. So far the stock has hit a 52-week low of $88.91 and 52-week high of $240.00. BlackRock stock has been showing support around 218.62 and resistance in the 230.66 range. Technical indicators for the stock are Bullish and S&P gives BLK a neutral 3 STAR (out of 5) hold rating. BLK appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Jan '10 240 covered call (BDW AH) for a net debit in the $219.31 area. That is also the break even stock price for this trade. This covered call has a 71 day duration, provides 3.22% downside protection and a 9.43% assigned return rate for a 48.50% annualized return rate (comparison purposes only). BlackRock has a current annual dividend yield of 1.41%. [FBB-Seven Summits Research]

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