Opinion on  Suncor Energy Inc (SU)     Sector: Energy  >  Industry: Oil & Gas - Integrated
Suncor Energy

Trades for 02-Jun-2008

Dividend Information
Dividend Yield:	0.60 %
Dividend Yield 5yr Avg:	0.40 %
Dividend Rate:	$ 0.40 %
Dividend Payout Ratio:	6.00 %
Dividend Payout Ratio 5yr Avg:	8.00 %
Dividend Growth Rate 3yr Avg:	21.78 %
Dividend Growth Rate 5yr Avg:	22.12 %
Dividend AllStar™ Ranking:
Consecutive Div. Increases:	2 years
Dividend Payment Type:	Cash
Dividend Declaration Date:	Apr-24-2008
Dividend Ex Date:	Jun-02-2008
Dividend Record Date:	Jun-04-2008
Dividend Pay Date:	Jun-25-2008
Dividend Amount:	0.0998
Dividend Payments:	Last 12 months payments: 4
Dividends Paid Since >	1994

<center> <font> Chart by StockCharts.com </font> </center> <font> <font> SU (Suncor Energy, Inc.)
Company Profile
The market was primed for a downturn last week and we set up some nice plays to take advantage of that. </font> </font>

<font> <font> SU is a tar sand stock and as it is expensive to extract the stock really tracks the price of crude. Just so happens the dollar is strengthening and worries of a double dip in the world economy are teaming up on the price of oil. Thus they are teaming up on the price of SU. </font> </font>

<font> <font> Put SU on the report on 6-24-09 as it rebounded from a break of the 50 day EMA just two sessions prior. It bounced up to the 50 day and stalled; if it fell back we looked to buy some puts and ride the next leg lower. </font> </font>

<font> <font> It ended up taking SU a big longer to fall. It rallied up through the 50 day the next session and then stalled out, moving laterally for two more sessions. It was still below a key resistance level so we simply moved our buy point higher, tracking the movement of the stock in the pattern. On 7-1 it gapped higher and tapped that resistance only to roll over and closed back down below the 50 day EMA. </font> </font>

<font> <font> That is when we moved in. We bought some August $30 strike put options for $2.55, quite reasonable and with a relatively low implied volatility level as well as a -63 delta we stood to make a nice gain as SU fell back. It gapped lower the next session, dropping 3.5%. Gapped lower again Monday, losing 5.8% though it did bounce off the session low at some support at $26. That was our initial target level so we sold half of our position for $4.70, banking 84%, not bad for less than 4 sessions in the trade. We did not sell it all because SU can break that support and really tank; it often pays big dividends to let a part of your trade run with the trend despite hitting a near term support or resistance level. We will be attentive, however, as SU slid laterally the next four sessions, holding that support. </font> </font>