Advance Auto Parts (AAP) 11/20/09 PriceWatch Alert Could Hit 23.60% Return
Posted: Friday, November 20, 2009 8:25 AM EDT
By: Market Intelligence Center Staff
Advance Auto Parts (NYSE: AAP) closed yesterday at $40.12. So far the stock has hit a 52-week low of $24.03 and 52-week high of $47.41. Advance Auto Parts stock has been showing support around 39.42 and resistance in the 41.30 range. Technical indicators for the stock are Bullish and S&P gives AAP a very positive 5 STAR (out of 5) strong buy rating. AAP appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Mar '10 40 covered call (AAP CH) for a net debit in the $37.12 area. That is also the break even stock price for this trade. This covered call has a 120 day duration, provides 7.48% downside protection and a 7.76% assigned return rate for a 23.60% annualized return rate (comparison purposes only). Advance Auto Parts has a current annual dividend yield of 0.60%. [FBB-Seven Summits Research]
CLICK HERE: FREE Advance Auto Parts (AAP) Stock ReportSee what our analysts have uncovered about Advance Auto Parts (AAP).