Dec 18, 2012 (Marketintelligencecenter.com via COMTEX) -- Procter & Gamble Co (NYSE:PG) closed Monday's trading session at $69.93. In the past year, the stock has hit a 52-week low of $59.07 and 52-week high of $70.99. Procter and Gamble (PG) stock has been showing support around $69.37 and resistance in the $70.43 range. Technical indicators for the stock are Bullish and S&P gives Procter and Gamble (PG) a neutral 3 STARS (out of 5) hold rating. For a hedged play on Procter and Gamble (PG), look at the Jul '13 $67.50 covered call for a net debit in the $66.18 area. That is also the break-even stock price for this trade. This covered call has a duration of 214 days, provides 5.36% downside protection and an assigned return rate of 1.99% for an annualized return rate of 3.40% (for comparison purposes only). A lower-cost hedged play for Procter and Gamble (PG) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the Procter and Gamble (PG) Jan '14 $60.00 call and selling the Jul '13 $67.50 call for a total debit of $6.60. The trade has a lifespan of 214 days and would provide 4.76% downside protection and an assigned return rate of 13.64% for an annualized return rate of 23% (for comparison purposes only). Procter and Gamble (PG) has a current annual dividend yield of 3.21%.
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As of Friday, 12-14-2012 23:59, the latest Comtex SmarTrendA? Alert,
an automated pattern recognition system, indicated a DOWNTREND on
04-27-2012 for PG @ $64.61.
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