Unisys (UIS) Could Fall Through $20.99 Support Level

Print Share

Feb 01, 2013 (Marketintelligencecenter.com via COMTEX) -- Unisys Corp (NYSE:UIS) closed Thursday's trading session at $22.21. In the past year, the stock has hit a 52-week low of $14.40 and 52-week high of $22.87. Unisys (UIS) stock has been showing support around $20.99 and resistance in the $22.99 range. Technical indicators for the stock are Bullish and S&P gives Unisys (UIS) a neutral 3 STARS (out of 5) hold rating. For a hedged play on Unisys (UIS), look at the Jul '13 $21.00 covered call for a net debit in the $19.31 area. That is also the break-even stock price for this trade. This covered call has a duration of 169 days, provides 13.06% downside protection and an assigned return rate of 8.75% for an annualized return rate of 18.90% (for comparison purposes only). A lower-cost hedged play for Unisys (UIS) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the Unisys (UIS) Jan '14 $10.00 call and selling the Jul '13 $21.00 call for a total debit of $9.95. The trade has a lifespan of 169 days and would provide 10.18% downside protection and an assigned return rate of 10.55% for an annualized return rate of 23% (for comparison purposes only). Unisys (UIS) has a current trailing average dividend yield of 0%.

MarketIntelligenceCenter.com

(C) Copyright 2013, Marketintelligencecenter.com. All rights reserved.

**********************************************************************

As of Monday, 01-28-2013 23:59, the latest Comtex SmarTrendA? Alert,
an automated pattern recognition system, indicated a DOWNTREND on
06-05-2012 for UIS @ $14.74.

For more information on SmarTrend, contact your market data
provider or go to www.mysmartrend.com

SmarTrend is a registered trademark of Comtex News Network, Inc.
Copyright A? 2004-2013 Comtex News Network, Inc. All rights reserved.

Free Stock Analysis From Zacks

Includes Zacks Long-Term Recommendation and Target Price

Zacks Research is Reported On:

Zacks Investment Research

is an A+ Rated BBB

Accredited Business.