ABB Ltd (ABB) PriceWatch Alert With Support Around $27.64

Posted on Wednesday, July 23, 2008 8:07 AM

ABB Ltd (NYSE: ABB) closed yesterday at $28.69. So far the stock has hit a 52-week low of $20.42 and 52-week high of $33.39. ABB stock has been showing support around 27.64 and resistance in the 29.26 range. Technical indicators for the stock are Neutral. ABB appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Mar '09 30 covered call (ABB CF) for a net debit in the $25.84 area. That is also the break even stock price for this trade. This covered call has a 241 day duration, provides 9.93% downside protection and a 16.10% assigned return rate for a 24.38% annualized return rate (comparison purposes only). ABB does not pay dividends at this time. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]