Petrohawk Energy Corp. (HK) 11/3/09 PriceWatch Alert Targets 18.22% Return

Posted: Tuesday, November 03, 2009 8:29 AM EDT

Petrohawk Energy Corp. (NYSE: HK) closed yesterday at $23.62. So far the stock has hit a 52-week low of $10.96 and 52-week high of $28.49. Petrohawk stock has been showing support around 22.31 and resistance in the 24.91 range. Technical indicators for the stock are Bearish and S&P gives HK a neutral 3 STAR (out of 5) hold rating. HK appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Mar '10 20 covered call (HK CD) for a net debit in the $18.72 area. That is also the break even stock price for this trade. This covered call has a 137 day duration, provides 20.75% downside protection and a 6.84% assigned return rate for an 18.22% annualized return rate (comparison purposes only). Petrohawk does not pay dividends at this time. [ATU-Seven Summits Research]

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