America Movil SAB de CV (AMX) 2/9/10 PriceWatch Alert Down To $40.08 Break Even

Posted: Tuesday, February 09, 2010 8:36 AM EDT
By: Market Intelligence Center Staff

America Movil SAB de CV (NYSE: AMX) closed yesterday at $43.38. So far the stock has hit a 52-week low of $23.35 and 52-week high of $50.23. America Movil SAB de CV stock has been showing support around 42.69 and resistance in the 44.71 range. Technical indicators for the stock are Bearish and S&P gives AMX a neutral 3 STAR (out of 5) hold rating. AMX appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a May '10 43 covered call for a net debit in the $40.08 area. That is also the break even stock price for this trade. This covered call has a 102 day duration, provides 7.61% downside protection and a 7.29% assigned return rate for a 26.07% annualized return rate (comparison purposes only). A lower cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the AMX Jan '11 25 Call and selling the May '10 43 call for a $16.10 debit. The trade has a 102 day life and would provide 5.26% downside protection and an 11.80% assigned return rate for a 42.00% annualized return rate (for comparison purposes only). America Movil SAB de CV has a current annual dividend yield of 1.02%. [ATU-Seven Summits Research]