WMS Industries (WMS) Flat Yesterday And Stock Trading With Bearish Technicals

WMS Industries (NYSE: WMS) closed yesterday at $40.45. So far the stock has hit a 52-week low of $15.48 and 52-week high of $50.11. WMS Industries stock has been showing support around 38.68 and resistance in the 41.46 range. Technical indicators for the stock are Bearish and S&P gives WMS a neutral 3 STAR (out of 5) hold rating. WMS appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Jan '10 40 covered call (WMS AH) for a net debit in the $37.15 area. That is also the break even stock price for this trade. This covered call has a 73 day duration, provides 8.16% downside protection and a 7.67% assigned return rate for a 38.36% annualized return rate (comparison purposes only). WMS Industries does not pay dividends at this time.

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