Tech Data (TECD) Trading In Tight Support/Resistance Range With Bullish Technicals

Tech Data (NasdaqNM: TECD) closed yesterday at $41.28. So far the stock has hit a 52-week low of $14.14 and 52-week high of $44.63. Tech Data stock has been showing support around 40.43 and resistance in the 42.97 range. Technical indicators for the stock are Bullish and S&P gives TECD a neutral 3 STAR (out of 5) hold rating. TECD appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Dec '09 40 covered call (TDQ LH) for a net debit in the $38.38 area. That is also the break even stock price for this trade. This covered call has a 58 day duration, provides 7.03% downside protection and a 4.22% assigned return rate for a 26.56% annualized return rate (comparison purposes only). Tech Data does not pay dividends at this time.

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