Unilever (UN) 11/20/09 PriceWatch Alert Targets 6.77% Downside Protection
Posted: Friday, November 20, 2009 8:29 AM EDT
By: Market Intelligence Center Staff
Unilever (NYSE: UN) closed yesterday at $31.04. So far the stock has hit a 52-week low of $16.91 and 52-week high of $32.23. Unilever stock has been showing support around 30.37 and resistance in the 31.37 range. Technical indicators for the stock are Bullish and S&P gives UN a neutral 3 STAR (out of 5) hold rating. UN appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Feb '10 30 covered call (UN BF) for a net debit in the $28.94 area. That is also the break even stock price for this trade. This covered call has a 92 day duration, provides 6.77% downside protection and a 3.66% assigned return rate for a 14.53% annualized return rate (comparison purposes only). Unilever has a current annual dividend yield of 1.83%. [FBB-Seven Summits Research]
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