TransCanada Corp. (TRP) 10/30/09 PriceWatch Alert With $29.10 Break Even
Posted: Friday, October 30, 2009 8:46 AM EDT
By: Market Intelligence Center Staff
TransCanada Corp. (NYSE: TRP) closed yesterday at $30.50. 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 29.95 and resistance in the 30.89 range. Technical indicators for the stock are Bearish 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 Feb '10 30 covered call (TRP BF) for a net debit in the $29.10 area. That is also the break even stock price for this trade. This covered call has an 113 day duration, provides 4.59% downside protection and a 3.09% assigned return rate for a 9.99% annualized return rate (comparison purposes only). TransCanada has a current annual dividend yield of 4.47%. [FBB-Seven Summits Research]
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