Celanese (CE) 11/18/09 PriceWatch Alert Targets 21.95% Downside Protection

Posted: Wednesday, November 18, 2009 8:08 AM EDT

Celanese (NYSE: CE) closed yesterday at $29.61. So far the stock has hit a 52-week low of $5.71 and 52-week high of $30.20. Celanese stock has been showing support around 28.88 and resistance in the 30.18 range. Technical indicators for the stock are Bullish and S&P gives CE a weak 2 STAR (out of 5) sell rating. CE appears on the Investors Observer Analysts Favorites list. For a hedged play on this stock, look at a Jun '10 25 covered call (CE FE) for a net debit in the $23.11 area. That is also the break even stock price for this trade. This covered call has a 213 day duration, provides 21.95% downside protection and an 8.18% assigned return rate for a 14.01% annualized return rate (comparison purposes only). Celanese has a current annual dividend yield of 0.55%. [WBA-Seven Summits Research]

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