Canadian Pacific Railway (CP) Showing Bullish Technicals

Canadian Pacific Railway (NYSE: CP) closed yesterday at $48.10. So far the stock has hit a 52-week low of $25.11 and 52-week high of $57.11. Canadian Pacific Railway stock has been showing support around 47.39 and resistance in the 49.35 range. Technical indicators for the stock are Bullish and S&P gives CP a neutral 3 STAR (out of 5) hold rating. CP appears on the Investors Observer Stocks In The News list. Stifel Nicolaus downgraded CP Friday to Sell from Hold. For a hedged play on this stock, look at a Dec '09 45 covered call (CP LI) for a net debit in the $42.80 area. That is also the break even stock price for this trade. This covered call has an 86 day duration, provides 11.02% downside protection and a 5.14% assigned return rate for a 21.82% annualized return rate (comparison purposes only). Canadian Pacific Railway has a current annual dividend yield of 2.06%.

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