Crown Castle International (CCI) 11/24/09 PriceWatch Alert Bullish Price Movement

Posted: Tuesday, November 24, 2009 8:33 AM EDT
By: Market Intelligence Center Staff

Crown Castle International (NYSE: CCI) closed yesterday at $37.66. So far the stock has hit a 52-week low of $10.07 and 52-week high of $38.89. Crown Castle International stock has been showing support around 36.37 and resistance in the 39.53 range. Technical indicators for the stock are Bullish and S&P gives CCI a very positive 5 STAR (out of 5) strong buy rating. CCI appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at an Apr '10 35 covered call (CCI DG) for a net debit in the $33.06 area. That is also the break even stock price for this trade. This covered call has a 144 day duration, provides 12.21% downside protection and a 5.87% assigned return rate for a 14.87% annualized return rate (comparison purposes only). A lower cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the CCI Jan '11 12.50 Call (VVA AV) and selling the Apr '10 35 call (CCI DG) for a $21.80 debit. The trade has a 144 day life and would provide 8.92% downside protection and a 3.21% assigned return rate for an 8.00% annualized return rate (for comparison purposes only). Crown Castle International does not pay dividends at this time. [ATU-Seven Summits Research]