Unilever (UN) 11/11/09 PriceWatch Alert Up To 8.89% Downside Protection
Posted: Wednesday, November 11, 2009 8:19 AM EDT
By: Market Intelligence Center Staff
Unilever (NYSE: UN) closed yesterday at $31.51. 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 31.23 and resistance in the 31.75 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 $28.71 area. That is also the break even stock price for this trade. This covered call has a 192 day duration, provides 8.89% downside protection and a 4.49% assigned return rate for an 8.54% annualized return rate (comparison purposes only). Unilever has a current annual dividend yield of 1.88%. [WBA-Seven Summits Research]
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