Sigma Aldrich (SIAL) 11/6/09 PriceWatch Alert Up To 12.05% Downside Protection

Posted: Friday, November 06, 2009 8:44 AM EDT

Sigma Aldrich (NasdaqNM: SIAL) closed yesterday at $54.79. So far the stock has hit a 52-week low of $31.45 and 52-week high of $56.29. Sigma Aldrich stock has been showing support around 52.86 and resistance in the 55.76 range. Technical indicators for the stock are Bullish and S&P gives SIAL a neutral 3 STAR (out of 5) hold rating. SIAL appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Apr '10 50 covered call (IAQ DJ) for a net debit in the $48.19 area. That is also the break even stock price for this trade. This covered call has a 162 day duration, provides 12.05% downside protection and a 3.76% assigned return rate for an 8.46% annualized return rate (comparison purposes only). Sigma Aldrich has a current annual dividend yield of 1.09%. [FBB-Seven Summits Research]

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