PetSmart (PETM) 11/20/09 PriceWatch Alert Targets 18.45% Return
Posted: Friday, November 20, 2009 8:13 AM EDT
By: Market Intelligence Center Staff
PetSmart (NasdaqNM: PETM) closed yesterday at $25.86. So far the stock has hit a 52-week low of $14.39 and 52-week high of $26.85. PetSmart stock has been showing support around 25.00 and resistance in the 26.42 range. Technical indicators for the stock are Bullish and S&P gives PETM a neutral 3 STAR (out of 5) hold rating. PETM appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Apr '10 25 covered call (QPT DE) for a net debit in the $23.26 area. That is also the break even stock price for this trade. This covered call has a 148 day duration, provides 10.05% downside protection and a 7.48% assigned return rate for an 18.45% annualized return rate (comparison purposes only). PetSmart has a current annual dividend yield of 1.54%. [FBB-Seven Summits Research]
CLICK HERE: FREE PetSmart (PETM) Stock ReportSee what our analysts have uncovered about PetSmart (PETM).