Compass Minerals International (CMP) 11/6/09 PriceWatch Alert With 11.24% Downside Protection

Posted: Friday, November 06, 2009 8:41 AM EDT

Compass Minerals International (NYSE: CMP) closed yesterday at $64.05. So far the stock has hit a 52-week low of $42.60 and 52-week high of $67.05. Compass Minerals International stock has been showing support around 61.90 and resistance in the 65.22 range. Technical indicators for the stock are Bullish and S&P gives CMP a neutral 3 STAR (out of 5) hold rating. CMP appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Mar '10 60 covered call (CMP CL) for a net debit in the $56.85 area. That is also the break even stock price for this trade. This covered call has a 134 day duration, provides 11.24% downside protection and a 5.54% assigned return rate for a 15.09% annualized return rate (comparison purposes only). Compass Minerals International has a current annual dividend yield of 2.28%. [FBB-Seven Summits Research]

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