Dollar Tree Stores (DLTR) 11/20/09 PriceWatch Alert At $46.25 Break Even
Posted: Friday, November 20, 2009 8:22 AM EDT
By: Market Intelligence Center Staff
Dollar Tree Stores (NasdaqNM: DLTR) closed yesterday at $48.75. So far the stock has hit a 52-week low of $32.94 and 52-week high of $51.72. Dollar Tree stock has been showing support around 47.82 and resistance in the 49.70 range. Technical indicators for the stock are Bullish and S&P gives DLTR a positive 4 STAR (out of 5) buy rating. DLTR appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Feb '10 50 covered call (DTJ BJ) for a net debit in the $46.25 area. That is also the break even stock price for this trade. This covered call has a 92 day duration, provides 5.13% downside protection and an 8.11% assigned return rate for a 32.17% annualized return rate (comparison purposes only). Dollar Tree does not pay dividends at this time. [FBB-Seven Summits Research]
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