NICOR (GAS) 10/29/09 PriceWatch Alert Targets 7.16% Return
Posted: Thursday, October 29, 2009 8:14 AM EDT
By: Market Intelligence Center Staff
NICOR (NYSE: GAS) closed yesterday at $37.27. So far the stock has hit a 52-week low of $27.50 and 52-week high of $47.60. NICOR stock has been showing support around 36.79 and resistance in the 38.19 range. Technical indicators for the stock are Bullish and S&P gives GAS a positive 4 STAR (out of 5) buy rating. GAS appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Apr '10 35 covered call (GAS DG) for a net debit in the $33.87 area. That is also the break even stock price for this trade. This covered call has a 170 day duration, provides 9.12% downside protection and a 3.34% assigned return rate for a 7.16% annualized return rate (comparison purposes only). NICOR has a current annual dividend yield of 5.05%. [THA-Seven Summits Research]
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