Nalco Holding (NLC) 11/6/09 PriceWatch Alert Support At Around $21.42

Posted: Friday, November 06, 2009 8:47 AM EDT

Nalco Holding (NYSE: NLC) closed yesterday at $22.26. So far the stock has hit a 52-week low of $7.80 and 52-week high of $23.13. Nalco stock has been showing support around 21.42 and resistance in the 22.68 range. Technical indicators for the stock are Bullish and S&P gives NLC a neutral 3 STAR (out of 5) hold rating. NLC appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jun '10 20 covered call (NLC FD) for a net debit in the $18.86 area. That is also the break even stock price for this trade. This covered call has a 225 day duration, provides 15.27% downside protection and a 6.04% assigned return rate for a 9.81% annualized return rate (comparison purposes only). Nalco has a current annual dividend yield of 0.66%. [FBB-Seven Summits Research]

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