TransCanada Corp. (TRP) 10/28/09 PriceWatch Alert At $28.99 Break Even
Posted: Wednesday, October 28, 2009 8:41 AM EDT
By: Market Intelligence Center Staff
TransCanada Corp. (NYSE: TRP) closed yesterday at $31.04. 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 30.48 and resistance in the 31.46 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 $28.99 area. That is also the break even stock price for this trade. This covered call has a 206 day duration, provides 6.60% downside protection and a 3.48% assigned return rate for a 6.17% annualized return rate (comparison purposes only). TransCanada has a current annual dividend yield of 4.36%. [WBA-Seven Summits Research]
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