Molina Healthcare (MOH) 11/6/09 PriceWatch Alert Shows Bullish Technicals

Posted: Friday, November 06, 2009 8:33 AM EDT

Molina Healthcare (NYSE: MOH) closed yesterday at $21.39. So far the stock has hit a 52-week low of $16.12 and 52-week high of $25.75. Molina Healthcare stock has been showing support around 19.46 and resistance in the 22.80 range. Technical indicators for the stock are Bullish and S&P gives MOH a neutral 3 STAR (out of 5) hold rating. MOH appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Jun '10 20 covered call (MOH FD) for a net debit in the $17.79 area. That is also the break even stock price for this trade. This covered call has a 225 day duration, provides 16.83% downside protection and a 12.42% assigned return rate for a 20.15% annualized return rate (comparison purposes only). Molina Healthcare does not pay dividends at this time. [FBB-Seven Summits Research]

Click Symbol For More News On: (MOH)