Discover Financial Services (DFS) 11/17/09 PriceWatch Alert Targets 18.39% Return
Posted: Tuesday, November 17, 2009 8:42 AM EDT
By: Market Intelligence Center Staff
Discover Financial Services (NYSE: DFS) closed yesterday at $16.11. So far the stock has hit a 52-week low of $4.73 and 52-week high of $17.36. Discover stock has been showing support around 15.07 and resistance in the 16.83 range. Technical indicators for the stock are Bullish and S&P gives DFS a very positive 5 STAR (out of 5) strong buy rating. DFS appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at an Apr '10 14 covered call (DFS DQ) for a net debit in the $13.01 area. That is also the break even stock price for this trade. This covered call has a 151 day duration, provides 19.24% downside protection and a 7.61% assigned return rate for an 18.39% annualized return rate (comparison purposes only). Discover has a current annual dividend yield of 0.52%. [ATU-Seven Summits Research]
CLICK HERE: FREE Discover (DFS) Stock ReportSee what our analysts have uncovered about Discover (DFS).