Universal (UVV) 11/11/09 PriceWatch Alert Targets 14.95% Downside Protection
Posted: Wednesday, November 11, 2009 8:36 AM EDT
By: Market Intelligence Center Staff
Universal (NYSE: UVV) closed yesterday at $44.83. So far the stock has hit a 52-week low of $25.35 and 52-week high of $45.30. Universal stock has been showing support around 43.00 and resistance in the 46.04 range. Technical indicators for the stock are Bullish and S&P gives UVV a positive 4 STAR (out of 5) buy rating. UVV appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a May '10 40 covered call (UVV EH) for a net debit in the $38.13 area. That is also the break even stock price for this trade. This covered call has a 192 day duration, provides 14.95% downside protection and a 4.90% assigned return rate for a 9.32% annualized return rate (comparison purposes only). Universal has a current annual dividend yield of 4.23%. [WBA-Seven Summits Research]
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