Sunoco Logistics Partners LP (SXL) PriceWatch Alert At $53.90 Break Even

Posted: Monday, July 06, 2009 8:07 AM EDT

Sunoco Logistics Partners LP (NYSE: SXL) closed yesterday at $55.50. So far the stock has hit a 52-week low of $27.62 and 52-week high of $56.60. Sunoco Logistics stock has been showing support around 53.50 and resistance in the 56.50 range. Technical indicators for the stock are Bullish and S&P gives SXL a positive 4 STAR (out of 5) buy rating. SXL appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Nov '09 55 covered call (SXL KK) for a net debit in the $53.90 area. That is also the break even stock price for this trade. This covered call has a 138 day duration, provides 2.88% downside protection and a 2.04% assigned return rate for a 5.40% annualized return rate (comparison purposes only). Sunoco Logistics has a current annual dividend yield of 7.42%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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