Progress Energy (PGN) 10/9/09 PriceWatch Alert Could Hit 5.01% Return

Posted: Friday, October 09, 2009 8:33 AM EDT

Progress Energy (NYSE: PGN) closed yesterday at $37.21. So far the stock has hit a 52-week low of $31.35 and 52-week high of $42.09. Progress Energy stock has been showing support around 36.86 and resistance in the 37.62 range. Technical indicators for the stock are Bearish and S&P gives PGN a positive 4 STAR (out of 5) buy rating. PGN appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at an Apr '10 35 covered call (PGN DG) for a net debit in the $34.11 area. That is also the break even stock price for this trade. This covered call has a 190 day duration, provides 8.33% downside protection and a 2.61% assigned return rate for a 5.01% annualized return rate (comparison purposes only). Progress Energy has a current annual dividend yield of 6.52%. [FBB-Seven Summits Research]

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