Enterprise GP Holdings LP (EPE) 11/3/09 PriceWatch Alert Could Hit 7.01% Return

Posted: Tuesday, November 03, 2009 8:34 AM EDT

Enterprise GP Holdings LP (NYSE: EPE) closed yesterday at $32.29. So far the stock has hit a 52-week low of $14.75 and 52-week high of $34.19. Enterprise GP stock has been showing support around 31.53 and resistance in the 33.79 range. Technical indicators for the stock are Bullish and S&P gives EPE a positive 4 STAR (out of 5) buy rating. EPE appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a May '10 30 covered call (EPE EF) for a net debit in the $28.89 area. That is also the break even stock price for this trade. This covered call has a 200 day duration, provides 10.53% downside protection and a 3.84% assigned return rate for a 7.01% annualized return rate (comparison purposes only). Enterprise GP has a current annual dividend yield of 6.34%. [ATU-Seven Summits Research]

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