Plains All American Pipeline (PAA) PriceWatch Alert Bullish Price Movement

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

Plains All American Pipeline (NYSE: PAA) closed yesterday at $42.75. So far the stock has hit a 52-week low of $23.25 and 52-week high of $48.36. Plains All American Pipeline stock has been showing support around 42.10 and resistance in the 43.96 range. Technical indicators for the stock are Bullish and S&P gives PAA a positive 4 STAR (out of 5) buy rating. PAA appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Nov '09 40 covered call (PAA KH) for a net debit in the $39.05 area. That is also the break even stock price for this trade. This covered call has a 138 day duration, provides 8.65% downside protection and a 2.43% assigned return rate for a 6.43% annualized return rate (comparison purposes only). Plains All American Pipeline has a current annual dividend yield of 8.58%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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