Sempra Energy (SRE) 11/27/09 PriceWatch Alert With Support Around $52.89

Posted: Thursday, November 26, 2009 8:14 AM EDT

Sempra Energy (NYSE: SRE) closed yesterday at $53.83. So far the stock has hit a 52-week low of $36.43 and 52-week high of $54.00. Sempra Energy stock has been showing support around 52.89 and resistance in the 54.47 range. Technical indicators for the stock are Bullish and S&P gives SRE a very positive 5 STAR (out of 5) strong buy rating. SRE appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 55 covered call (SRE AK) for a net debit in the $53.03 area. That is also the break even stock price for this trade. This covered call has a 50 day duration, provides 1.49% downside protection and a 3.71% assigned return rate for a 27.12% annualized return rate (comparison purposes only). Sempra Energy has a current annual dividend yield of 3.00%. [FBB-Seven Summits Research]

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