BorgWarner (BWA) 9/8/10 PriceWatch Alert Up To 13.02% Downside Protection
Posted: Wednesday, September 08, 2010 8:35 AM EDT
By: Market Intelligence Center Staff
BorgWarner (NYSE: BWA) ended the last trading session at $47.62. So far the stock has hit a 52-week low of $27.62 and 52-week high of $49.04. BorgWarner stock has been showing support around 46.88 and resistance in the 48.72 range. Technical indicators for the stock are Bullish and S&P gives BWA a neutral 3 STAR (out of 5) hold rating. BWA appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Jan '11 45 covered call for a net debit in the $41.42 area. That is also the break even stock price for this trade. This covered call has a 136 day duration, provides 13.02% downside protection and an 8.64% assigned return rate for a 23.20% annualized return rate (comparison purposes only). BorgWarner does not pay dividends at this time. [WBA-Seven Summits Research]
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