SPX (SPW) 11/6/09 PriceWatch Alert Up To 7.65% Downside Protection

Posted: Friday, November 06, 2009 8:24 AM EDT

SPX (NYSE: SPW) closed yesterday at $56.18. So far the stock has hit a 52-week low of $25.45 and 52-week high of $65.23. SPX stock has been showing support around 54.58 and resistance in the 57.46 range. Technical indicators for the stock are Bearish and S&P gives SPW a neutral 3 STAR (out of 5) hold rating. SPW appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Jan '10 55 covered call (SPW AK) for a net debit in the $51.88 area. That is also the break even stock price for this trade. This covered call has a 71 day duration, provides 7.65% downside protection and a 6.01% assigned return rate for a 30.92% annualized return rate (comparison purposes only). SPX has a current annual dividend yield of 1.82%. [FBB-Seven Summits Research]

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