Dreamworks Animation (DWA) 11/20/09 PriceWatch Alert Could Hit 14.44% Return
Posted: Friday, November 20, 2009 8:42 AM EDT
By: Market Intelligence Center Staff
Dreamworks Animation (NasdaqNM: DWA) closed yesterday at $32.94. So far the stock has hit a 52-week low of $17.32 and 52-week high of $38.05. Dreamworks Animation stock has been showing support around 32.27 and resistance in the 33.81 range. Technical indicators for the stock are Bearish and S&P gives DWA a positive 4 STAR (out of 5) buy rating. DWA appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Mar '10 30 covered call (DWA CF) for a net debit in the $28.64 area. That is also the break even stock price for this trade. This covered call has a 120 day duration, provides 13.05% downside protection and a 4.75% assigned return rate for a 14.44% annualized return rate (comparison purposes only). Dreamworks Animation does not pay dividends at this time. [FBB-Seven Summits Research]
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