Southern Copper (PCU) 11/5/09 PriceWatch Alert Down To $28.54 Break Even

Posted: Thursday, November 05, 2009 8:13 AM EDT

Southern Copper (NYSE: PCU) closed yesterday at $33.04. So far the stock has hit a 52-week low of $9.12 and 52-week high of $36.39. Southern Copper stock has been showing support around 32.31 and resistance in the 34.29 range. Technical indicators for the stock are Bullish. PCU appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 30 covered call (PCU AF) for a net debit in the $28.54 area. That is also the break even stock price for this trade. This covered call has a 72 day duration, provides 13.62% downside protection and a 5.12% assigned return rate for a 25.93% annualized return rate (comparison purposes only). Southern Copper has a current annual dividend yield of 1.24%. [THA-Seven Summits Research]

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