Rockwell Automation (ROK) 11/11/09 PriceWatch Alert Up To 10.80% Downside Protection
Posted: Wednesday, November 11, 2009 8:38 AM EDT
By: Market Intelligence Center Staff
Rockwell Automation (NYSE: ROK) closed yesterday at $43.51. So far the stock has hit a 52-week low of $17.50 and 52-week high of $45.12. Rockwell Automation stock has been showing support around 42.30 and resistance in the 45.38 range. Technical indicators for the stock are Bullish and S&P gives ROK a neutral 3 STAR (out of 5) hold rating. ROK appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 40 covered call (ROK AH) for a net debit in the $38.81 area. That is also the break even stock price for this trade. This covered call has a 66 day duration, provides 10.80% downside protection and a 3.07% assigned return rate for a 16.96% annualized return rate (comparison purposes only). Rockwell Automation has a current annual dividend yield of 2.68%. [WBA-Seven Summits Research]
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