Covance (CVD) 11/20/09 PriceWatch Alert Targets 47.66% Return
Posted: Friday, November 20, 2009 8:13 AM EDT
By: Market Intelligence Center Staff
Covance (NYSE: CVD) closed yesterday at $52.49. So far the stock has hit a 52-week low of $31.43 and 52-week high of $58.95. Covance stock has been showing support around 51.44 and resistance in the 53.32 range. Technical indicators for the stock are Bearish and S&P gives CVD a positive 4 STAR (out of 5) buy rating. CVD appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Jan '10 55 covered call (CVD AK) for a net debit in the $51.19 area. That is also the break even stock price for this trade. This covered call has a 57 day duration, provides 2.48% downside protection and a 7.44% assigned return rate for a 47.66% annualized return rate (comparison purposes only). Covance does not pay dividends at this time. [FBB-Seven Summits Research]
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