PetSmart (PETM) 11/18/09 PriceWatch Alert Targets 7.51% Downside Protection
Posted: Wednesday, November 18, 2009 8:47 AM EDT
By: Market Intelligence Center Staff
PetSmart (NasdaqNM: PETM) closed yesterday at $25.96. So far the stock has hit a 52-week low of $13.27 and 52-week high of $26.85. PetSmart stock has been showing support around 25.33 and resistance in the 26.41 range. Technical indicators for the stock are Bullish and S&P gives PETM a neutral 3 STAR (out of 5) hold rating. PETM appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 25 covered call (QPT AE) for a net debit in the $24.01 area. That is also the break even stock price for this trade. This covered call has a 59 day duration, provides 7.51% downside protection and a 4.12% assigned return rate for a 25.51% annualized return rate (comparison purposes only). PetSmart has a current annual dividend yield of 1.56%. [WBA-Seven Summits Research]
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