Westlake Chemical (WLK) 11/13/09 PriceWatch Alert Could Hit 25.25% Return
Posted: Friday, November 13, 2009 8:47 AM EDT
By: Market Intelligence Center Staff
Westlake Chemical (NYSE: WLK) closed yesterday at $26.44. So far the stock has hit a 52-week low of $10.30 and 52-week high of $28.22. Westlake Chemical stock has been showing support around 25.75 and resistance in the 27.71 range. Technical indicators for the stock are Bullish and S&P gives WLK a neutral 3 STAR (out of 5) hold rating. WLK appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 25 covered call (WLK AE) for a net debit in the $23.94 area. That is also the break even stock price for this trade. This covered call has a 64 day duration, provides 9.46% downside protection and a 4.43% assigned return rate for a 25.25% annualized return rate (comparison purposes only). Westlake Chemical has a current annual dividend yield of 0.87%. [FBB-Seven Summits Research]
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