TransCanada Corp. (TRP) 10/27/09 PriceWatch Alert Down To $29.00 Break Even
Posted: Tuesday, October 27, 2009 8:25 AM EDT
By: Market Intelligence Center Staff
TransCanada Corp. (NYSE: TRP) closed yesterday at $31.10. So far the stock has hit a 52-week low of $22.24 and 52-week high of $32.90. TransCanada stock has been showing support around 30.43 and resistance in the 32.25 range. Technical indicators for the stock are Bullish and S&P gives TRP a neutral 3 STAR (out of 5) hold rating. TRP appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a May '10 30 covered call (TRP EF) for a net debit in the $29.00 area. That is also the break even stock price for this trade. This covered call has a 207 day duration, provides 6.75% downside protection and a 3.45% assigned return rate for a 6.08% annualized return rate (comparison purposes only). TransCanada has a current annual dividend yield of 4.34%. [ATU-Seven Summits Research]
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