Warnaco Group Inc. (WRC) 11/6/09 PriceWatch Alert With Support Around $40.16

Posted: Friday, November 06, 2009 8:14 AM EDT

Warnaco Group Inc. (NYSE: WRC) closed yesterday at $41.93. So far the stock has hit a 52-week low of $12.22 and 52-week high of $45.75. Warnaco Group stock has been showing support around 40.16 and resistance in the 43.30 range. Technical indicators for the stock are Bearish and S&P gives WRC a neutral 3 STAR (out of 5) hold rating. WRC appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Jan '10 40 covered call (WRC AH) for a net debit in the $37.83 area. That is also the break even stock price for this trade. This covered call has a 71 day duration, provides 9.78% downside protection and a 5.74% assigned return rate for a 29.49% annualized return rate (comparison purposes only). Warnaco Group does not pay dividends at this time. [FBB-Seven Summits Research]

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