Unilever (UN) 11/10/09 PriceWatch Alert With 8.64% Downside Protection
Posted: Tuesday, November 10, 2009 8:19 AM EDT
By: Market Intelligence Center Staff
Unilever (NYSE: UN) closed yesterday at $31.25. So far the stock has hit a 52-week low of $16.91 and 52-week high of $31.79. Unilever stock has been showing support around 30.90 and resistance in the 31.48 range. Technical indicators for the stock are Bullish and S&P gives UN a neutral 3 STAR (out of 5) hold rating. UN appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a May '10 30 covered call (UN EF) for a net debit in the $28.55 area. That is also the break even stock price for this trade. This covered call has a 193 day duration, provides 8.64% downside protection and a 5.08% assigned return rate for a 9.61% annualized return rate (comparison purposes only). Unilever has a current annual dividend yield of 2.86%. [ATU-Seven Summits Research]
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