Rockwell Automation (ROK) 11/20/09 PriceWatch Alert With $38.00 Break Even
Posted: Friday, November 20, 2009 8:24 AM EDT
By: Market Intelligence Center Staff
Rockwell Automation (NYSE: ROK) closed yesterday at $44.60. So far the stock has hit a 52-week low of $17.50 and 52-week high of $46.72. Rockwell Automation stock has been showing support around 43.53 and resistance in the 45.89 range. Technical indicators for the stock are Bullish and S&P gives ROK a neutral 3 STAR (out of 5) hold rating. ROK appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Apr '10 40 covered call (ROK DH) for a net debit in the $38.00 area. That is also the break even stock price for this trade. This covered call has a 148 day duration, provides 14.80% downside protection and a 5.26% assigned return rate for a 12.98% annualized return rate (comparison purposes only). Rockwell Automation has a current annual dividend yield of 2.57%. [FBB-Seven Summits Research]
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