Search

 

Petrochina (PTR) 12/1/09 PriceWatch Alert Support At Around $122.43

Posted: Tuesday, December 01, 2009 8:11 AM EDT

Petrochina (NYSE: PTR) closed yesterday at $124.90. So far the stock has hit a 52-week low of $63.94 and 52-week high of $135.92. Petrochina stock has been showing support around 122.43 and resistance in the 126.35 range. Technical indicators for the stock are Bullish and S&P gives PTR a positive 4 STAR (out of 5) buy rating. PTR appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Mar '10 120 covered call (PTR CD) for a net debit in the $113.40 area. That is also the break even stock price for this trade. This covered call has a 109 day duration, provides 9.21% downside protection and a 5.82% assigned return rate for a 19.49% annualized return rate (comparison purposes only). A lower cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the PTR Jan '11 80 Call (ZJK AP) and selling the Mar '10 120 call (PTR CD) for a $35.45 debit. The trade has a 109 day life and would provide 7.57% downside protection and a 12.83% assigned return rate for a 43.00% annualized return rate (for comparison purposes only). Petrochina has a current annual dividend yield of 2.86%. [ATU-Seven Summits Research]

Click Symbol For More News On: (PTR)