Southern Union (SUG) 11/23/09 PriceWatch Alert Support At Around $19.33

Posted: Monday, November 23, 2009 8:15 AM EDT

Southern Union (NYSE: SUG) closed yesterday at $19.73. So far the stock has hit a 52-week low of $10.60 and 52-week high of $21.58. Southern Union stock has been showing support around 19.33 and resistance in the 20.17 range. Technical indicators for the stock are Bearish and S&P gives SUG a neutral 3 STAR (out of 5) hold rating. SUG appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Mar '10 20 covered call (SUG CD) for a net debit in the $18.68 area. That is also the break even stock price for this trade. This covered call has an 117 day duration, provides 5.32% downside protection and a 7.07% assigned return rate for a 22.04% annualized return rate (comparison purposes only). Southern Union has a current annual dividend yield of 2.92%. [ABR-Seven Summits Research]

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