BHP Billiton PLC (BBL) Could Be On The Move Today With Bullish Technicals

Posted: Friday, November 13, 2009 9:08 AM EDT

BHP Billiton PLC (NYSE: BBL) closed yesterday at $59.14. So far the stock has hit a 52-week low of $21.06 and 52-week high of $61.69. BHP Billiton stock has been showing support around 57.87 and resistance in the 61.31 range. Technical indicators for the stock are Bullish and S&P gives BBL a neutral 3 STAR (out of 5) hold rating. BBL appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Mar '10 55 covered call (BBL CK) for a net debit in the $51.54 area. That is also the break even stock price for this trade. This covered call has a 127 day duration, provides 12.85% downside protection and a 6.71% assigned return rate for a 19.29% annualized return rate (comparison purposes only). BHP Billiton has a current annual dividend yield of 2.74%. [FBB-Seven Summits Research]

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