PetSmart (PETM) 11/12/09 PriceWatch Alert With $22.83 Break Even
Posted: Thursday, November 12, 2009 8:14 AM EDT
By: Market Intelligence Center Staff
PetSmart (NasdaqNM: PETM) closed yesterday at $25.03. So far the stock has hit a 52-week low of $13.27 and 52-week high of $26.85. PetSmart stock has been showing support around 24.34 and resistance in the 25.40 range. Technical indicators for the stock are Bullish and S&P gives PETM a neutral 3 STAR (out of 5) hold rating. PETM appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Apr '10 25 covered call (QPT DE) for a net debit in the $22.83 area. That is also the break even stock price for this trade. This covered call has a 156 day duration, provides 8.79% downside protection and a 9.51% assigned return rate for a 22.24% annualized return rate (comparison purposes only). PetSmart has a current annual dividend yield of 1.63%. [THA-Seven Summits Research]
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