CNH Global (CNH) In Tight Support/Resistance Range With Bullish Technicals

Posted: Friday, November 06, 2009 9:17 AM EDT

CNH Global (NYSE: CNH) closed yesterday at $20.92. So far the stock has hit a 52-week low of $5.69 and 52-week high of $23.51. CNH Global stock has been showing support around 19.05 and resistance in the 21.93 range. Technical indicators for the stock are Bullish and S&P gives CNH a neutral 3 STAR (out of 5) hold rating. CNH appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Mar '10 17.50 covered call (CNH CW) for a net debit in the $16.22 area. That is also the break even stock price for this trade. This covered call has a 134 day duration, provides 22.47% downside protection and a 7.89% assigned return rate for a 21.50% annualized return rate (comparison purposes only). CNH Global does not pay dividends at this time. [FBB-Seven Summits Research]

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