Watsco (WSO) 11/19/09 PriceWatch Alert Up To 15.25% Return
Posted: Thursday, November 19, 2009 8:11 AM EDT
By: Market Intelligence Center Staff
Watsco (NYSE: WSO) closed yesterday at $52.23. So far the stock has hit a 52-week low of $29.34 and 52-week high of $57.63. Watsco stock has been showing support around 50.98 and resistance in the 53.64 range. Technical indicators for the stock are Bullish and S&P gives WSO a neutral 3 STAR (out of 5) hold rating. WSO appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Feb '10 50 covered call (WSO BJ) for a net debit in the $48.13 area. That is also the break even stock price for this trade. This covered call has a 93 day duration, provides 7.85% downside protection and a 3.89% assigned return rate for a 15.25% annualized return rate (comparison purposes only). Watsco has a current annual dividend yield of 3.64%. [THA-Seven Summits Research]
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