Ecolab (ECL) 11/11/09 PriceWatch Alert Up To 5.39% Downside Protection
Posted: Wednesday, November 11, 2009 8:16 AM EDT
By: Market Intelligence Center Staff
Ecolab (NYSE: ECL) closed yesterday at $46.38. So far the stock has hit a 52-week low of $29.27 and 52-week high of $47.88. Ecolab stock has been showing support around 45.77 and resistance in the 46.85 range. Technical indicators for the stock are Bullish and S&P gives ECL a positive 4 STAR (out of 5) buy rating. ECL appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 45 covered call (ECL AI) for a net debit in the $43.88 area. That is also the break even stock price for this trade. This covered call has a 66 day duration, provides 5.39% downside protection and a 2.55% assigned return rate for a 14.12% annualized return rate (comparison purposes only). Ecolab has a current annual dividend yield of 1.21%. [WBA-Seven Summits Research]
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