Monday, August 8, 2011

Charles Schwab


Charles Schwab
Charles Schwab (NYSE:SCHW) closed Friday's seesaw trading session at $13.66. In the past year, the stock has hit a 52-week low of $12.64 and 52-week high of $19.69. Charles Schwab(SCHW) stock has been showing support around $12.95 and resistance in the $14.81 range. Technical indicators for the stock are Bearish and S&P gives Charles Schwab (SCHW) a neutral 3 STARS (out of 5) hold rating. For a hedged play on Charles Schwab (SCHW), look at the Dec '11 $13.00 covered call for a net debit in the $12.11 area. That is also the break-even stock price for this trade. This covered call has a duration of 131 days, provides 11.35% downside protection and an assigned return rate of 7.35% for an annualized return rate of 20.48% (for comparison purposes only). Charles Schwab (SCHW) has a current annual dividend yield of 1.60%.

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