Dollar Tree Stores (DLTR) 11/17/09 PriceWatch Alert With 5.58% Downside Protection
Posted: Tuesday, November 17, 2009 8:21 AM EDT
By: Market Intelligence Center Staff
Dollar Tree Stores (NasdaqNM: DLTR) closed yesterday at $49.28. So far the stock has hit a 52-week low of $32.94 and 52-week high of $51.72. Dollar Tree stock has been showing support around 46.83 and resistance in the 50.73 range. Technical indicators for the stock are Bullish and S&P gives DLTR a positive 4 STAR (out of 5) buy rating. DLTR appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Feb '10 50 covered call (DTJ BJ) for a net debit in the $46.53 area. That is also the break even stock price for this trade. This covered call has a 95 day duration, provides 5.58% downside protection and a 7.46% assigned return rate for a 28.65% annualized return rate (comparison purposes only). Dollar Tree does not pay dividends at this time. [ATU-Seven Summits Research]
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