TransCanada Corp. (TRP) PriceWatch Alert Up To 6.02% Return

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

TransCanada Corp. (NYSE: TRP) closed yesterday at $26.84. So far the stock has hit a 52-week low of $22.24 and 52-week high of $39.18. TransCanada stock has been showing support around 26.53 and resistance in the 27.29 range. Technical indicators for the stock are Bearish and S&P gives TRP a neutral 3 STAR (out of 5) hold rating. TRP appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Feb '10 25 covered call (TRP BE) for a net debit in the $24.09 area. That is also the break even stock price for this trade. This covered call has a 229 day duration, provides 10.25% downside protection and a 3.78% assigned return rate for a 6.02% annualized return rate (comparison purposes only). TransCanada has a current annual dividend yield of 5.64%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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