BJ's Wholesale Club (BJ) 11/20/09 PriceWatch Alert Could Hit 20.90% Return
Posted: Friday, November 20, 2009 8:23 AM EDT
By: Market Intelligence Center Staff
BJ's Wholesale Club (NYSE: BJ) closed yesterday at $35.35. So far the stock has hit a 52-week low of $27.26 and 52-week high of $40.77. BJ's Wholesale Club stock has been showing support around 34.64 and resistance in the 35.90 range. Technical indicators for the stock are Bearish and S&P gives BJ a neutral 3 STAR (out of 5) hold rating. BJ appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Mar '10 35 covered call (BJ CG) for a net debit in the $32.75 area. That is also the break even stock price for this trade. This covered call has a 120 day duration, provides 7.36% downside protection and a 6.87% assigned return rate for a 20.90% annualized return rate (comparison purposes only). BJ's Wholesale Club does not pay dividends at this time. [FBB-Seven Summits Research]
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