Pacific Gas and Electric (PCG) 11/16/09 PriceWatch Alert Up To 6.92% Downside Protection
Posted: Monday, November 16, 2009 8:18 AM EDT
By: Market Intelligence Center Staff
Pacific Gas and Electric (NYSE: PCG) ended the last trading session at $41.93. 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 41.20 and resistance in the 42.62 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 $39.03 area. That is also the break even stock price for this trade. This covered call has a 124 day duration, provides 6.92% downside protection and a 2.49% assigned return rate for a 7.32% annualized return rate (comparison purposes only). Pacific Gas and Electric has a current annual dividend yield of 4.00%. [ABR-Seven Summits Research]
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