Progressive (PGR) 11/6/09 PriceWatch Alert Down To $14.13 Break Even

Posted: Friday, November 06, 2009 8:28 AM EDT

Progressive (NYSE: PGR) closed yesterday at $16.23. So far the stock has hit a 52-week low of $9.76 and 52-week high of $17.50. Progressive stock has been showing support around 15.90 and resistance in the 16.42 range. Technical indicators for the stock are Bearish and S&P gives PGR a neutral 3 STAR (out of 5) hold rating. PGR appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a May '10 15 covered call (PGR EC) for a net debit in the $14.13 area. That is also the break even stock price for this trade. This covered call has a 197 day duration, provides 12.94% downside protection and a 6.16% assigned return rate for an 11.41% annualized return rate (comparison purposes only). Progressive does not pay dividends at this time. [FBB-Seven Summits Research]

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