Kansas City Southern (KSU) 11/17/09 PriceWatch Alert Targets 21.52% Downside Protection
Posted: Tuesday, November 17, 2009 8:32 AM EDT
By: Market Intelligence Center Staff
Kansas City Southern (NYSE: KSU) closed yesterday at $29.28. So far the stock has hit a 52-week low of $12.25 and 52-week high of $29.78. Kansas City Southern stock has been showing support around 28.85 and resistance in the 29.71 range. Technical indicators for the stock are Bullish and S&P gives KSU a positive 4 STAR (out of 5) buy rating. KSU appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Jun '10 25 covered call (KSU FE) for a net debit in the $22.98 area. That is also the break even stock price for this trade. This covered call has a 214 day duration, provides 21.52% downside protection and an 8.79% assigned return rate for a 14.99% annualized return rate (comparison purposes only). Kansas City Southern does not pay dividends at this time. [ATU-Seven Summits Research]
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