Watsco (WSO) 11/16/09 PriceWatch Alert Shows Neutral Technicals
Posted: Monday, November 16, 2009 8:42 AM EDT
By: Market Intelligence Center Staff
Watsco (NYSE: WSO) ended the last trading session at $52.22. So far the stock has hit a 52-week low of $29.34 and 52-week high of $57.63. Watsco stock has been showing support around 50.53 and resistance in the 53.19 range. Technical indicators for the stock are Neutral and S&P gives WSO a neutral 3 STAR (out of 5) hold rating. WSO appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Feb '10 50 covered call (WSO BJ) for a net debit in the $48.12 area. That is also the break even stock price for this trade. This covered call has a 96 day duration, provides 7.85% downside protection and a 3.91% assigned return rate for a 14.85% annualized return rate (comparison purposes only). Watsco has a current annual dividend yield of 3.65%. [ABR-Seven Summits Research]
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