Packaging Corp (PKG) 11/6/09 PriceWatch Alert Support Down To $18.24

Posted: Friday, November 06, 2009 8:28 AM EDT

Packaging Corp (NYSE: PKG) closed yesterday at $19.08. So far the stock has hit a 52-week low of $9.66 and 52-week high of $22.38. Packaging Corp stock has been showing support around 18.24 and resistance in the 19.54 range. Technical indicators for the stock are Bearish and S&P gives PKG a neutral 3 STAR (out of 5) hold rating. PKG appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at an Apr '10 17.50 covered call (PKG DW) for a net debit in the $16.48 area. That is also the break even stock price for this trade. This covered call has a 162 day duration, provides 13.63% downside protection and a 6.19% assigned return rate for a 13.95% annualized return rate (comparison purposes only). Packaging Corp has a current annual dividend yield of 3.17%. [FBB-Seven Summits Research]

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