BHP Billiton PLC (BBL) 11/19/09 PriceWatch Alert Targets 10.82% Downside Protection

Posted: Thursday, November 19, 2009 8:30 AM EDT

BHP Billiton PLC (NYSE: BBL) closed yesterday at $62.87. So far the stock has hit a 52-week low of $21.06 and 52-week high of $63.56. BHP Billiton stock has been showing support around 61.74 and resistance in the 64.12 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 60 covered call (BBL CL) for a net debit in the $56.07 area. That is also the break even stock price for this trade. This covered call has a 121 day duration, provides 10.82% downside protection and a 7.01% assigned return rate for a 21.14% annualized return rate (comparison purposes only). BHP Billiton has a current annual dividend yield of 2.60%. [THA-Seven Summits Research]

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