Buckeye Partners LP (BPL) Trading Near 52-Week High

Posted: Thursday, November 12, 2009 9:06 AM EDT

Buckeye Partners LP (NYSE: BPL) closed yesterday at $51.15. So far the stock has hit a 52-week low of $26.50 and 52-week high of $52.49. Buckeye Partners stock has been showing support around 50.68 and resistance in the 51.38 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 $48.85 area. That is also the break even stock price for this trade. This covered call has a 100 day duration, provides 4.50% downside protection and a 2.35% assigned return rate for an 8.59% annualized return rate (comparison purposes only). Buckeye Partners has a current annual dividend yield of 7.25%. [THA-Seven Summits Research]

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