Kansas City Southern (KSU) 11/12/09 PriceWatch Alert Up To 21.63% Downside Protection
Posted: Thursday, November 12, 2009 8:35 AM EDT
By: Market Intelligence Center Staff
Kansas City Southern (NYSE: KSU) closed yesterday at $29.59. So far the stock has hit a 52-week low of $12.25 and 52-week high of $29.78. Kansas City Southern stock has been showing support around 28.93 and resistance in the 30.11 range. Technical indicators for the stock are Bullish and S&P gives KSU a positive 4 STAR (out of 5) buy rating. KSU appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Jun '10 25 covered call (KSU FE) for a net debit in the $23.19 area. That is also the break even stock price for this trade. This covered call has a 219 day duration, provides 21.63% downside protection and a 7.81% assigned return rate for a 13.01% annualized return rate (comparison purposes only). Kansas City Southern does not pay dividends at this time. [THA-Seven Summits Research]
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