BHP Billiton PLC (BBL) 11/3/09 PriceWatch Alert Bearish Price Movement

Posted: Tuesday, November 03, 2009 8:36 AM EDT

BHP Billiton PLC (NYSE: BBL) closed yesterday at $54.96. So far the stock has hit a 52-week low of $21.06 and 52-week high of $61.69. BHP Billiton stock has been showing support around 52.85 and resistance in the 56.91 range. Technical indicators for the stock are Bearish and S&P gives BBL a neutral 3 STAR (out of 5) hold rating. BBL appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Mar '10 50 covered call (BBL CJ) for a net debit in the $47.56 area. That is also the break even stock price for this trade. This covered call has a 137 day duration, provides 13.46% downside protection and a 5.13% assigned return rate for a 13.67% annualized return rate (comparison purposes only). BHP Billiton has a current annual dividend yield of 2.86%. [ATU-Seven Summits Research]

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