PPG Industries (PPG) PriceWatch Alert Targets 17.26% Return

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

PPG Industries (NYSE: PPG) closed yesterday at $42.15. So far the stock has hit a 52-week low of $28.16 and 52-week high of $69.89. PPG Industries stock has been showing support around 41.06 and resistance in the 44.32 range. Technical indicators for the stock are Bearish and S&P gives PPG a very positive 5 STAR (out of 5) strong buy rating. PPG appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Nov '09 40 covered call (PPG KH) for a net debit in the $37.55 area. That is also the break even stock price for this trade. This covered call has a 138 day duration, provides 10.91% downside protection and a 6.52% assigned return rate for a 17.26% annualized return rate (comparison purposes only). PPG Industries has a current annual dividend yield of 4.83%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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