Scotts Miracle Gro (SMG) 11/18/09 PriceWatch Alert With 6.28% Downside Protection
Posted: Wednesday, November 18, 2009 8:39 AM EDT
By: Market Intelligence Center Staff
Scotts Miracle Gro (NYSE: SMG) closed yesterday at $41.40. So far the stock has hit a 52-week low of $24.17 and 52-week high of $44.25. Scotts Miracle Gro stock has been showing support around 40.91 and resistance in the 41.87 range. Technical indicators for the stock are Bearish and S&P gives SMG a neutral 3 STAR (out of 5) hold rating. SMG appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 40 covered call (SMG AH) for a net debit in the $38.80 area. That is also the break even stock price for this trade. This covered call has a 59 day duration, provides 6.28% downside protection and a 3.09% assigned return rate for a 19.13% annualized return rate (comparison purposes only). Scotts Miracle Gro has a current annual dividend yield of 1.20%. [WBA-Seven Summits Research]
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