Rockwell Automation (ROK) 11/17/09 PriceWatch Alert With 6.08% Downside Protection
Posted: Tuesday, November 17, 2009 8:03 AM EDT
By: Market Intelligence Center Staff
Rockwell Automation (NYSE: ROK) closed yesterday at $45.25. So far the stock has hit a 52-week low of $17.50 and 52-week high of $45.59. Rockwell Automation stock has been showing support around 43.20 and resistance in the 46.62 range. Technical indicators for the stock are Bullish and S&P gives ROK a neutral 3 STAR (out of 5) hold rating. ROK appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 45 covered call (ROK AI) for a net debit in the $42.50 area. That is also the break even stock price for this trade. This covered call has a 60 day duration, provides 6.08% downside protection and a 5.88% assigned return rate for a 35.78% annualized return rate (comparison purposes only). Rockwell Automation has a current annual dividend yield of 2.70%. [ATU-Seven Summits Research]
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