Questar (STR) 11/3/09 PriceWatch Alert At $37.23 Break Even

Posted: Tuesday, November 03, 2009 8:31 AM EDT

Questar (NYSE: STR) closed yesterday at $39.83. So far the stock has hit a 52-week low of $22.59 and 52-week high of $43.46. Questar stock has been showing support around 38.10 and resistance in the 41.70 range. Technical indicators for the stock are Bullish and S&P gives STR a neutral 3 STAR (out of 5) hold rating. STR appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Jan '10 40 covered call (STR AH) for a net debit in the $37.23 area. That is also the break even stock price for this trade. This covered call has a 74 day duration, provides 6.53% downside protection and a 7.44% assigned return rate for a 36.70% annualized return rate (comparison purposes only). Questar has a current annual dividend yield of 1.19%. [ATU-Seven Summits Research]

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