Southern Union (SUG) 11/24/09 PriceWatch Alert Could Hit 20.98% Return

Posted: Tuesday, November 24, 2009 8:22 AM EDT

Southern Union (NYSE: SUG) closed yesterday at $19.90. So far the stock has hit a 52-week low of $11.51 and 52-week high of $21.58. Southern Union stock has been showing support around 19.56 and resistance in the 20.34 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 $18.75 area. That is also the break even stock price for this trade. This covered call has an 116 day duration, provides 5.78% downside protection and a 6.67% assigned return rate for a 20.98% annualized return rate (comparison purposes only). Southern Union has a current annual dividend yield of 3.00%. [ATU-Seven Summits Research]

Click Symbol For More News On: (SUG)