Plum Creek Timber (PCL) PriceWatch Alert Down To $23.91 Break Even

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

Plum Creek Timber (NYSE: PCL) closed yesterday at $28.91. So far the stock has hit a 52-week low of $22.88 and 52-week high of $65.38. Plum Creek Timber stock has been showing support around 28.08 and resistance in the 30.56 range. Technical indicators for the stock are Bearish and S&P gives PCL a neutral 3 STAR (out of 5) hold rating. PCL appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Nov '09 25 covered call (PCL KE) for a net debit in the $23.91 area. That is also the break even stock price for this trade. This covered call has a 138 day duration, provides 17.30% downside protection and a 4.56% assigned return rate for a 12.06% annualized return rate (comparison purposes only). Plum Creek Timber has a current annual dividend yield of 5.62%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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