Advance Auto Parts (AAP) 11/6/09 PriceWatch Alert Technicals Showing Bearish

Posted: Friday, November 06, 2009 8:17 AM EDT

Advance Auto Parts (NYSE: AAP) closed yesterday at $37.72. So far the stock has hit a 52-week low of $24.03 and 52-week high of $47.41. Advance Auto Parts stock has been showing support around 36.99 and resistance in the 38.35 range. Technical indicators for the stock are Bearish and S&P gives AAP a positive 4 STAR (out of 5) buy rating. AAP appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Mar '10 35 covered call (AAP CG) for a net debit in the $33.12 area. That is also the break even stock price for this trade. This covered call has a 134 day duration, provides 12.20% downside protection and a 5.68% assigned return rate for a 15.46% annualized return rate (comparison purposes only). Advance Auto Parts has a current annual dividend yield of 0.62%. [FBB-Seven Summits Research]

Click Symbol For More News On: (AAP)