Dollar Tree Stores (DLTR) 11/18/09 PriceWatch Alert Up To 5.49% Downside Protection
Posted: Wednesday, November 18, 2009 8:44 AM EDT
By: Market Intelligence Center Staff
Dollar Tree Stores (NasdaqNM: DLTR) closed yesterday at $49.16. 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 48.44 and resistance in the 49.74 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 $46.46 area. That is also the break even stock price for this trade. This covered call has a 94 day duration, provides 5.49% downside protection and a 7.62% assigned return rate for a 29.59% annualized return rate (comparison purposes only). Dollar Tree does not pay dividends at this time. [WBA-Seven Summits Research]
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