NICOR (GAS) PriceWatch Alert With 14.68% Downside Protection

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

NICOR (NYSE: GAS) closed yesterday at $34.07. So far the stock has hit a 52-week low of $27.50 and 52-week high of $51.99. NICOR stock has been showing support around 33.36 and resistance in the 35.50 range. Technical indicators for the stock are Bullish and S&P gives GAS a neutral 3 STAR (out of 5) hold rating. GAS appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 30 covered call (GAS AF) for a net debit in the $29.07 area. That is also the break even stock price for this trade. This covered call has a 194 day duration, provides 14.68% downside protection and a 3.20% assigned return rate for a 6.02% annualized return rate (comparison purposes only). NICOR has a current annual dividend yield of 5.32%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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