Intrepid Potash (IPI)

[CHA$E]

For what it's worth....


Intrepid Potash (IPI) Showing Bearish Technicals With Support At $28.94

Posted: Thursday, May 12, 2011 8:53 AM EDT

Intrepid Potash (NYSE:IPI) closed Wednesday's downbeat trading session at $29.74. In the past year, the stock has hit a 52-week low of $19.08 and 52-week high of $40.22. Intrepid Potash stock has been showing support around $28.94 and resistance in the $30.92 range. Technical indicators for the stock are Bearish. For a hedged play on this stock, look at the Dec '11 $25.00 covered call for a net debit in the $23.24 area. That is also the break-even stock price for this trade. This covered call has a duration of 219 days, provides 21.86% downside protection and an assigned return rate of 7.57% for an annualized return rate of 12.62% (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 IPI Jan '12 $17.50 call and selling the Dec '11 $25.00 call for a total debit of $6.85. The trade has a lifespan of 219 days and would provide 18.12% downside protection and an assigned return rate of 9.49% for an annualized return rate of 16% (for comparison purposes only). Intrepid Potash does not pay dividends at this time. [FBB-Seven Summits Research]

http://www.marketintelligencecenter.com/analyfav/1272617


........hope this helps.

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