Celanese (CE) 11/20/09 PriceWatch Alert With $22.92 Break Even

Posted: Friday, November 20, 2009 8:03 AM EDT

Celanese (NYSE: CE) closed yesterday at $29.12. 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 27.91 and resistance in the 29.85 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 $22.92 area. That is also the break even stock price for this trade. This covered call has a 211 day duration, provides 21.29% downside protection and a 9.08% assigned return rate for a 15.70% annualized return rate (comparison purposes only). Celanese has a current annual dividend yield of 0.54%. [FBB-Seven Summits Research]

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