Dollar Tree Stores (DLTR) 11/12/09 PriceWatch Alert Targets 5.78% Downside Protection
Posted: Thursday, November 12, 2009 8:25 AM EDT
By: Market Intelligence Center Staff
Dollar Tree Stores (NasdaqNM: DLTR) closed yesterday at $49.32. So far the stock has hit a 52-week low of $32.94 and 52-week high of $51.72. Dollar Tree stock has been showing support around 48.47 and resistance in the 50.01 range. Technical indicators for the stock are Bullish and S&P gives DLTR a positive 4 STAR (out of 5) buy rating. DLTR appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Feb '10 50 covered call (DTJ BJ) for a net debit in the $46.47 area. That is also the break even stock price for this trade. This covered call has a 100 day duration, provides 5.78% downside protection and a 7.60% assigned return rate for a 27.73% annualized return rate (comparison purposes only). Dollar Tree does not pay dividends at this time. [THA-Seven Summits Research]
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