Westlake Chemical (WLK) 11/16/09 PriceWatch Alert Could Hit 23.89% Return
Posted: Monday, November 16, 2009 8:26 AM EDT
By: Market Intelligence Center Staff
Westlake Chemical (NYSE: WLK) ended the last trading session at $26.54. 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 26.07 and resistance in the 26.99 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 $24.04 area. That is also the break even stock price for this trade. This covered call has a 61 day duration, provides 9.42% downside protection and a 3.99% assigned return rate for a 23.89% annualized return rate (comparison purposes only). Westlake Chemical has a current annual dividend yield of 0.86%. [ABR-Seven Summits Research]
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