Southern Union (SUG) Traded Lower Yesterday And Stock Now Showing Bearish Technicals

Posted: Wednesday, November 04, 2009 8:39 AM EDT

Southern Union (NYSE: SUG) closed yesterday at $19.47. So far the stock has hit a 52-week low of $10.60 and 52-week high of $21.58. Southern Union stock has been showing support around 19.11 and resistance in the 19.75 range. Technical indicators for the stock are Bearish and S&P gives SUG a neutral 3 STAR (out of 5) hold rating. SUG appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jun '10 20 covered call (SUG FD) for a net debit in the $18.07 area. That is also the break even stock price for this trade. This covered call has a 227 day duration, provides 7.19% downside protection and a 10.68% assigned return rate for a 17.17% annualized return rate (comparison purposes only). Southern Union has a current annual dividend yield of 3.07%. [WBA-Seven Summits Research]

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