DaVita (DVA) 11/6/09 PriceWatch Alert Targets 7.55% Downside Protection

Posted: Friday, November 06, 2009 8:39 AM EDT

DaVita (NYSE: DVA) closed yesterday at $58.30. So far the stock has hit a 52-week low of $40.96 and 52-week high of $59.93. DaVita stock has been showing support around 57.73 and resistance in the 59.23 range. Technical indicators for the stock are Bullish and S&P gives DVA a positive 4 STAR (out of 5) buy rating. DVA appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Jan '10 55 covered call (DVA AK) for a net debit in the $53.90 area. That is also the break even stock price for this trade. This covered call has a 71 day duration, provides 7.55% downside protection and a 2.04% assigned return rate for a 10.49% annualized return rate (comparison purposes only). DaVita does not pay dividends at this time. [FBB-Seven Summits Research]

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