Procter and Gamble (PG) 10/30/09 PriceWatch Alert Targets 2.44% Downside Protection

Posted: Friday, October 30, 2009 8:10 AM EDT

Procter and Gamble (NYSE: PG) closed yesterday at $59.54. So far the stock has hit a 52-week low of $43.93 and 52-week high of $66.82. Procter and Gamble stock has been showing support around 58.41 and resistance in the 60.55 range. Technical indicators for the stock are Bullish and S&P gives PG a positive 4 STAR (out of 5) buy rating. PG appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Dec '09 60 covered call (PG LL) for a net debit in the $58.09 area. That is also the break even stock price for this trade. This covered call has a 50 day duration, provides 2.44% downside protection and a 3.29% assigned return rate for a 24.00% annualized return rate (comparison purposes only). Procter and Gamble has a current annual dividend yield of 3.08%. [FBB-Seven Summits Research]

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