Stanley Works (SWK) 11/10/09 PriceWatch Alert Could Hit 23.05% Return
Posted: Tuesday, November 10, 2009 8:25 AM EDT
By: Market Intelligence Center Staff
Stanley Works (NYSE: SWK) closed yesterday at $50.17. So far the stock has hit a 52-week low of $22.61 and 52-week high of $50.27. Stanley Works stock has been showing support around 48.81 and resistance in the 50.95 range. Technical indicators for the stock are Bullish and S&P gives SWK a neutral 3 STAR (out of 5) hold rating. SWK appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 50 covered call (SWK AJ) for a net debit in the $47.97 area. That is also the break even stock price for this trade. This covered call has a 67 day duration, provides 4.39% downside protection and a 4.23% assigned return rate for a 23.05% annualized return rate (comparison purposes only). Stanley Works has a current annual dividend yield of 2.66%. [ATU-Seven Summits Research]
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