NYSE Euronext (NYX) 11/20/09 PriceWatch Alert Support At Around $25.58

Posted: Friday, November 20, 2009 8:45 AM EDT
By: Market Intelligence Center Staff

NYSE Euronext (NYSE: NYX) closed yesterday at $26.07. So far the stock has hit a 52-week low of $14.52 and 52-week high of $31.93. NYSE Euronext stock has been showing support around 25.58 and resistance in the 26.50 range. Technical indicators for the stock are Bearish and S&P gives NYX a neutral 3 STAR (out of 5) hold rating. NYX appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Jan '10 25 covered call (NYX AV) for a net debit in the $24.13 area. That is also the break even stock price for this trade. This covered call has a 57 day duration, provides 7.44% downside protection and a 3.61% assigned return rate for a 23.09% annualized return rate (comparison purposes only). A lower cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the NYX Jan '11 15 Call (OOX AC) and selling the Jan '10 25 call (NYX AV) for a $9.31 debit. The trade has a 57 day life and would provide 6.75% downside protection and a 7.41% assigned return rate for a 47.00% annualized return rate (for comparison purposes only). NYSE Euronext has a current annual dividend yield of 4.53%. [FBB-Seven Summits Research]