Scotts Miracle Gro (SMG) 11/9/09 PriceWatch Alert Targets 12.09% Downside Protection
Posted: Monday, November 09, 2009 8:12 AM EDT
By: Market Intelligence Center Staff
Scotts Miracle Gro (NYSE: SMG) ended the last trading session at $43.85. So far the stock has hit a 52-week low of $23.64 and 52-week high of $44.25. Scotts Miracle Gro stock has been showing support around 42.04 and resistance in the 44.84 range. Technical indicators for the stock are Bullish and S&P gives SMG a neutral 3 STAR (out of 5) hold rating. SMG appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Mar '10 40 covered call (SMG CH) for a net debit in the $38.55 area. That is also the break even stock price for this trade. This covered call has a 131 day duration, provides 12.09% downside protection and a 3.76% assigned return rate for a 10.48% annualized return rate (comparison purposes only). Scotts Miracle Gro has a current annual dividend yield of 1.19%. [ABR-Seven Summits Research]
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