Plains All American Pipeline (PAA) 11/18/09 PriceWatch Alert Targets 3.68% Downside Protection
Posted: Wednesday, November 18, 2009 8:29 AM EDT
By: Market Intelligence Center Staff
Plains All American Pipeline (NYSE: PAA) closed yesterday at $50.23. So far the stock has hit a 52-week low of $24.50 and 52-week high of $51.19. Plains All American Pipeline stock has been showing support around 49.66 and resistance in the 50.66 range. Technical indicators for the stock are Bullish and S&P gives PAA a positive 4 STAR (out of 5) buy rating. PAA appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Feb '10 50 covered call (PAA BJ) for a net debit in the $48.38 area. That is also the break even stock price for this trade. This covered call has a 94 day duration, provides 3.68% downside protection and a 3.35% assigned return rate for a 13.00% annualized return rate (comparison purposes only). Plains All American Pipeline has a current annual dividend yield of 7.39%. [WBA-Seven Summits Research]
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