Pacific Gas and Electric (PCG) 11/12/09 PriceWatch Alert Shows Bullish Technicals

Posted: Thursday, November 12, 2009 8:47 AM EDT

Pacific Gas and Electric (NYSE: PCG) closed yesterday at $42.01. So far the stock has hit a 52-week low of $33.61 and 52-week high of $43.21. Pacific Gas and Electric stock has been showing support around 41.47 and resistance in the 42.97 range. Technical indicators for the stock are Bullish and S&P gives PCG a neutral 3 STAR (out of 5) hold rating. PCG appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Mar '10 40 covered call (PCG CH) for a net debit in the $39.06 area. That is also the break even stock price for this trade. This covered call has a 128 day duration, provides 7.02% downside protection and a 2.41% assigned return rate for a 6.86% annualized return rate (comparison purposes only). Pacific Gas and Electric has a current annual dividend yield of 4.02%. [THA-Seven Summits Research]

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