EDS quietly hits 52-week high in heavy volume

Posted Feb 13th 2007 11:15AM by Victor Schiller
Filed under: Major Movement, Electronic Data Systems (EDS), Options

Electronic Data Systems (NYSE:EDS) opened today at $28.27. So far, the stock has hit a low of $28.17 and a high of $28.39. As of 10:13 this morning, EDS was trading at $28.34, up $0.07 (0.25%) on extremely heavy volume.

After hitting a one year low of $22.42 on July 18, 2006, the stock snaked up 26.7% to a 52-week high of $28.40 yesterday at 2:59 in the afternoon. Electronic Data Systems reported earnings last week and investors seem to like the direction the company is headed. The technicals for EDS have been strongly improving lately and S&P gives the company a 4 STAR (out of 5) buy rating with a current 12-Month target price of $32.

For a neutral hedged play on EDS, I would consider a June covered call at the $27.50 level. There is even a small dividend on the stock with a 0.7% annual yield.

Vic Schiller is an analyst on the move at Investors Observer. (Free Subscription)

DISCLOSURE NOTE: Mr. Schiller owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about.