United parcel service 5:10 AM
United Parcel Service (NYSE:UPS) closed Tuesday's wandering trading session at $72.05. In the past year, the stock has hit a 52-week low of $56.47 and 52-week high of $77.00. United Parcel Service stock has been showing support around $71.20 and resistance in the $73.34 range. Technical indicators for the stock are Bearish and S&P gives UPS a positive 4 STARS (out of 5) buy rating. For a hedged play on this stock, look at the May '11 $75.00 covered call for a net debit in the $71.02 area. That is also the break-even stock price for this trade. This covered call has a duration of 59 days, provides 1.43% downside protection and an assigned return rate of 5.60% for an annualized return rate of 34.67% (for comparison purposes only). A lower-cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the UPS Jan '12 $60.00 call and selling the May '11 $75.00 call for a total debit of $12.52. The trade has a lifespan of 59 days and would provide -0.65% downside protection and an assigned return rate of 19.81% for an annualized return rate of 123% (for comparison purposes only). United Parcel Service has a current annual dividend yield of 2.90%.
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Mega Millions jackpot up to $304 million 5:59 AM
The Mega Millions jackpot climbs to an estimated $304 million for the next drawing.
Mega Millions will be played again on Friday.
