Universal (UVV) 11/13/09 PriceWatch Alert At $42.33 Break Even
Posted: Friday, November 13, 2009 8:07 AM EDT
By: Market Intelligence Center Staff
Universal (NYSE: UVV) closed yesterday at $45.18. So far the stock has hit a 52-week low of $25.35 and 52-week high of $45.75. Universal stock has been showing support around 44.69 and resistance in the 45.99 range. Technical indicators for the stock are Bullish and S&P gives UVV a positive 4 STAR (out of 5) buy rating. UVV appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Feb '10 45 covered call (UVV BI) for a net debit in the $42.33 area. That is also the break even stock price for this trade. This covered call has a 99 day duration, provides 6.31% downside protection and a 6.31% assigned return rate for a 23.26% annualized return rate (comparison purposes only). Universal has a current annual dividend yield of 4.10%. [FBB-Seven Summits Research]
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