Westlake Chemical (WLK) 11/19/09 PriceWatch Alert Could Hit 18.78% Return
Posted: Thursday, November 19, 2009 8:40 AM EDT
By: Market Intelligence Center Staff
Westlake Chemical (NYSE: WLK) closed yesterday at $27.32. So far the stock has hit a 52-week low of $10.30 and 52-week high of $28.22. Westlake Chemical stock has been showing support around 26.67 and resistance in the 28.17 range. Technical indicators for the stock are Bullish and S&P gives WLK a neutral 3 STAR (out of 5) hold rating. WLK appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Apr '10 25 covered call (WLK DE) for a net debit in the $23.22 area. That is also the break even stock price for this trade. This covered call has a 149 day duration, provides 15.01% downside protection and a 7.67% assigned return rate for an 18.78% annualized return rate (comparison purposes only). Westlake Chemical has a current annual dividend yield of 0.83%. [THA-Seven Summits Research]
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