PPL (PPL) PriceWatch Alert With 10.05% Downside Protection

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

PPL (NYSE: PPL) closed yesterday at $31.83. So far the stock has hit a 52-week low of $24.25 and 52-week high of $53.23. PPL stock has been showing support around 30.80 and resistance in the 33.88 range. Technical indicators for the stock are Bearish and S&P gives PPL a neutral 3 STAR (out of 5) hold rating. PPL appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Oct '09 30 covered call (PPL JF) for a net debit in the $28.63 area. That is also the break even stock price for this trade. This covered call has a 103 day duration, provides 10.05% downside protection and a 4.79% assigned return rate for a 16.96% annualized return rate (comparison purposes only). PPL has a current annual dividend yield of 4.13%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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