Sigma Aldrich (SIAL) 11/18/09 PriceWatch Alert With 4.30% Downside Protection
Posted: Wednesday, November 18, 2009 8:32 AM EDT
By: Market Intelligence Center Staff
Sigma Aldrich (NasdaqNM: SIAL) closed yesterday at $55.81. So far the stock has hit a 52-week low of $31.45 and 52-week high of $56.29. Sigma Aldrich stock has been showing support around 54.94 and resistance in the 56.26 range. Technical indicators for the stock are Bullish and S&P gives SIAL a neutral 3 STAR (out of 5) hold rating. SIAL appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 55 covered call (IAQ AK) for a net debit in the $53.41 area. That is also the break even stock price for this trade. This covered call has a 59 day duration, provides 4.30% downside protection and a 2.98% assigned return rate for an 18.42% annualized return rate (comparison purposes only). Sigma Aldrich has a current annual dividend yield of 1.05%. [WBA-Seven Summits Research]
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