ABB Ltd (ABB) PriceWatch Alert Could Hit 26.70% Return

Posted on Thursday, July 24, 2008 8:07 AM

ABB Ltd (NYSE: ABB) closed yesterday at $28.42. 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 28.11 and resistance in the 28.89 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 $25.52 area. That is also the break even stock price for this trade. This covered call has a 240 day duration, provides 10.20% downside protection and a 17.55% assigned return rate for a 26.70% 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]