POSCO (PKX) 11/20/09 PriceWatch Alert Up To 7.79% Downside Protection
Posted: Friday, November 20, 2009 8:47 AM EDT
By: Market Intelligence Center Staff
POSCO (NYSE: PKX) closed yesterday at $119.35. So far the stock has hit a 52-week low of $42.35 and 52-week high of $123.61. POSCO stock has been showing support around 117.51 and resistance in the 122.21 range. Technical indicators for the stock are Bullish and S&P gives PKX a very positive 5 STAR (out of 5) strong buy rating. PKX appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Jan '10 115 covered call (PKX AC) for a net debit in the $110.05 area. That is also the break even stock price for this trade. This covered call has a 57 day duration, provides 7.79% downside protection and a 4.50% assigned return rate for a 28.80% annualized return rate (comparison purposes only). POSCO has a current annual dividend yield of 1.06%. [FBB-Seven Summits Research]
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