TransCanada Corp. (TRP) 11/6/09 PriceWatch Alert With 5.05% Downside Protection
Posted: Friday, November 06, 2009 8:10 AM EDT
By: Market Intelligence Center Staff
TransCanada Corp. (NYSE: TRP) closed yesterday at $30.67. So far the stock has hit a 52-week low of $22.24 and 52-week high of $32.90. TransCanada stock has been showing support around 30.24 and resistance in the 31.18 range. Technical indicators for the stock are Bearish and S&P gives TRP a neutral 3 STAR (out of 5) hold rating. TRP appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a May '10 30 covered call (TRP EF) for a net debit in the $29.12 area. That is also the break even stock price for this trade. This covered call has a 197 day duration, provides 5.05% downside protection and a 3.02% assigned return rate for a 5.60% annualized return rate (comparison purposes only). TransCanada has a current annual dividend yield of 4.52%. [FBB-Seven Summits Research]
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