Goodyear Tire and Rubber (GT) 11/19/09 PriceWatch Alert With 21.10% Downside Protection
Posted: Thursday, November 19, 2009 8:22 AM EDT
By: Market Intelligence Center Staff
Goodyear Tire and Rubber (NYSE: GT) closed yesterday at $14.69. So far the stock has hit a 52-week low of $3.17 and 52-week high of $18.84. Goodyear stock has been showing support around 14.32 and resistance in the 14.90 range. Technical indicators for the stock are Bearish and S&P gives GT a positive 4 STAR (out of 5) buy rating. GT appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at an Apr '10 12.50 covered call (GT DV) for a net debit in the $11.59 area. That is also the break even stock price for this trade. This covered call has a 149 day duration, provides 21.10% downside protection and a 7.85% assigned return rate for a 19.23% annualized return rate (comparison purposes only). Goodyear does not pay dividends at this time. [THA-Seven Summits Research]
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