Buckeye Partners LP (BPL) Showing Bullish Technicals With Support At 49.11

Posted: Wednesday, November 04, 2009 9:09 AM EDT

Buckeye Partners LP (NYSE: BPL) closed yesterday at $50.46. So far the stock has hit a 52-week low of $26.50 and 52-week high of $52.38. Buckeye Partners stock has been showing support around 49.11 and resistance in the 51.63 range. Technical indicators for the stock are Bullish and S&P gives BPL a positive 4 STAR (out of 5) buy rating. BPL appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Feb '10 50 covered call (BPL BJ) for a net debit in the $48.81 area. That is also the break even stock price for this trade. This covered call has a 108 day duration, provides 3.27% downside protection and a 2.44% assigned return rate for an 8.24% annualized return rate (comparison purposes only). Buckeye Partners has a current annual dividend yield of 7.34%. [WBA-Seven Summits Research]

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