Suncor Energy (SU) PriceWatch Alert Up To 43.82% Return

Posted on Tuesday, August 26, 2008 8:07 AM

Suncor Energy (NYSE: SU) closed yesterday at $56.41. So far the stock has hit a 52-week low of $39.67 and 52-week high of $74.28. Suncor Energy stock has been showing support around 54.38 and resistance in the 59.14 range. Technical indicators for the stock are Bullish and S&P gives SU a positive 4 STAR (out of 5) buy rating. SU appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at an Oct '08 55 covered call (SU JK) for a net debit in the $51.71 area. That is also the break even stock price for this trade. This covered call has a 53 day duration, provides 8.33% downside protection and a 6.36% assigned return rate for a 43.82% annualized return rate (comparison purposes only). Suncor Energy has a current annual dividend yield of 0.36%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]