Covance (CVD) 11/6/09 PriceWatch Alert With Support Around $51.20
Posted: Friday, November 06, 2009 8:46 AM EDT
By: Market Intelligence Center Staff
Covance (NYSE: CVD) closed yesterday at $53.77. So far the stock has hit a 52-week low of $31.43 and 52-week high of $58.95. Covance stock has been showing support around 51.20 and resistance in the 55.48 range. Technical indicators for the stock are Bearish and S&P gives CVD a positive 4 STAR (out of 5) buy rating. CVD appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Jan '10 55 covered call (CVD AK) for a net debit in the $51.57 area. That is also the break even stock price for this trade. This covered call has a 71 day duration, provides 4.09% downside protection and a 6.65% assigned return rate for a 34.19% annualized return rate (comparison purposes only). Covance does not pay dividends at this time. [FBB-Seven Summits Research]
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