ABB Ltd (ABB) In Tight Support/Resistance Range And Stock Trading On High Volume Near Resistance

Posted: Friday, November 13, 2009 8:45 AM EDT

ABB Ltd (NYSE: ABB) closed yesterday at $19.51. So far the stock has hit a 52-week low of $9.11 and 52-week high of $22.01. ABB stock has been showing support around 19.16 and resistance in the 20.10 range. Technical indicators for the stock are Bearish and S&P gives ABB a positive 4 STAR (out of 5) buy rating. ABB appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Jun '10 20 covered call (ABB FD) for a net debit in the $17.61 area. That is also the break even stock price for this trade. This covered call has a 218 day duration, provides 9.74% downside protection and a 13.57% assigned return rate for a 22.72% annualized return rate (comparison purposes only). ABB has a current annual dividend yield of 2.17%. [FBB-Seven Summits Research]

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