CenturyTel (CTL) Trading Just Off 52-Week High With Bullish Price Movement

Posted: Friday, November 20, 2009 9:14 AM EDT

CenturyTel (NYSE: CTL) closed yesterday at $34.79. So far the stock has hit a 52-week low of $20.45 and 52-week high of $35.00. CenturyTel stock has been showing support around 34.34 and resistance in the 35.20 range. Technical indicators for the stock are Bullish and S&P gives CTL a positive 4 STAR (out of 5) buy rating. CTL appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Apr '10 35 covered call (CTL DG) for a net debit in the $33.34 area. That is also the break even stock price for this trade. This covered call has a 148 day duration, provides 4.17% downside protection and a 4.98% assigned return rate for a 12.28% annualized return rate (comparison purposes only). CenturyTel has a current annual dividend yield of 8.05%. [FBB-Seven Summits Research]

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