Progress Energy (PGN) 11/4/09 PriceWatch Alert Technicals Showing Bearish

Posted: Wednesday, November 04, 2009 8:45 AM EDT

Progress Energy (NYSE: PGN) closed yesterday at $36.99. So far the stock has hit a 52-week low of $31.35 and 52-week high of $40.99. Progress Energy stock has been showing support around 36.66 and resistance in the 37.50 range. Technical indicators for the stock are Bearish and S&P gives PGN a positive 4 STAR (out of 5) buy rating. PGN appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at an Apr '10 35 covered call (PGN DG) for a net debit in the $34.14 area. That is also the break even stock price for this trade. This covered call has a 164 day duration, provides 7.70% downside protection and a 2.52% assigned return rate for a 5.61% annualized return rate (comparison purposes only). Progress Energy has a current annual dividend yield of 6.61%. [WBA-Seven Summits Research]

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