CHINA GREEN AGRI (CGA) 11/24/09 PriceWatch Alert Up To 22.96% Return

Posted: Tuesday, November 24, 2009 8:47 AM EDT
By: Market Intelligence Center Staff

CHINA GREEN AGRI (AMEX: CGA) closed yesterday at $15.85. So far the stock has hit a 52-week low of $2.15 and 52-week high of $17.49. CHINA GREEN AGRI stock has been showing support around 14.29 and resistance in the 17.43 range. Technical indicators for the stock are Bullish. CGA appears on the Investors Observer Stocks In The News list. CGA announced Monday morning that it will offer 1.28 million shares of common stock at $15.60 per share. For a hedged play on this stock, look at a Mar '10 12.50 covered call (CGA CV) for a net debit in the $11.65 area. That is also the break even stock price for this trade. This covered call has an 116 day duration, provides 26.50% downside protection and a 7.30% assigned return rate for a 22.96% annualized return rate (comparison purposes only). CHINA GREEN AGRI does not pay dividends at this time. [ATU-Seven Summits Research]