Snap on (SNA) 11/18/09 PriceWatch Alert With 12.32% Downside Protection
Posted: Wednesday, November 18, 2009 8:19 AM EDT
By: Market Intelligence Center Staff
Snap on (NYSE: SNA) closed yesterday at $38.15. So far the stock has hit a 52-week low of $20.51 and 52-week high of $41.65. Snap on stock has been showing support around 37.40 and resistance in the 38.86 range. Technical indicators for the stock are Bullish and S&P gives SNA a positive 4 STAR (out of 5) buy rating. SNA appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Mar '10 35 covered call (SNA CG) for a net debit in the $33.45 area. That is also the break even stock price for this trade. This covered call has a 122 day duration, provides 12.32% downside protection and a 4.63% assigned return rate for a 13.86% annualized return rate (comparison purposes only). Snap on has a current annual dividend yield of 3.15%. [WBA-Seven Summits Research]
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