PetSmart (PETM) 11/13/09 PriceWatch Alert With $21.40 Break Even
Posted: Friday, November 13, 2009 8:27 AM EDT
By: Market Intelligence Center Staff
PetSmart (NasdaqNM: PETM) closed yesterday at $24.70. 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 24.13 and resistance in the 25.57 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 22.50 covered call (QPT DX) for a net debit in the $21.40 area. That is also the break even stock price for this trade. This covered call has a 155 day duration, provides 13.36% downside protection and a 5.14% assigned return rate for a 12.10% annualized return rate (comparison purposes only). PetSmart has a current annual dividend yield of 1.62%. [FBB-Seven Summits Research]
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