Pacific Gas and Electric (PCG) PriceWatch Alert At $33.80 Break Even

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

Pacific Gas and Electric (NYSE: PCG) closed yesterday at $38.10. So far the stock has hit a 52-week low of $26.67 and 52-week high of $42.98. Pacific Gas and Electric stock has been showing support around 37.72 and resistance in the 38.60 range. Technical indicators for the stock are Bullish and S&P gives PCG a neutral 3 STAR (out of 5) hold rating. PCG appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 35 covered call (WVJ AG) for a net debit in the $33.80 area. That is also the break even stock price for this trade. This covered call has a 194 day duration, provides 11.29% downside protection and a 3.55% assigned return rate for a 6.68% annualized return rate (comparison purposes only). Pacific Gas and Electric has a current annual dividend yield of 4.38%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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