Wisconsin Energy (WEC) 11/18/09 PriceWatch Alert With $41.44 Break Even

Posted: Wednesday, November 18, 2009 8:42 AM EDT

Wisconsin Energy (NYSE: WEC) closed yesterday at $44.84. So far the stock has hit a 52-week low of $36.31 and 52-week high of $46.50. Wisconsin Energy stock has been showing support around 44.51 and resistance in the 45.45 range. Technical indicators for the stock are Bullish and S&P gives WEC a neutral 3 STAR (out of 5) hold rating. WEC appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Apr '10 42.50 covered call (WEC DV) for a net debit in the $41.44 area. That is also the break even stock price for this trade. This covered call has a 150 day duration, provides 7.58% downside protection and a 2.56% assigned return rate for a 6.22% annualized return rate (comparison purposes only). Wisconsin Energy has a current annual dividend yield of 3.03%. [WBA-Seven Summits Research]

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