NuStar Energy LP (NS) PriceWatch Alert Up To 4.86% Return

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

NuStar Energy LP (NYSE: NS) closed yesterday at $53.84. So far the stock has hit a 52-week low of $27.00 and 52-week high of $57.68. NuStar Energy stock has been showing support around 53.15 and resistance in the 54.93 range. Technical indicators for the stock are Bullish and S&P gives NS a positive 4 STAR (out of 5) buy rating. NS appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 50 covered call (KUX AJ) for a net debit in the $48.74 area. That is also the break even stock price for this trade. This covered call has a 194 day duration, provides 9.47% downside protection and a 2.59% assigned return rate for a 4.86% annualized return rate (comparison purposes only). NuStar Energy has a current annual dividend yield of 7.88%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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