Energy East (EAS) PriceWatch Alert Technicals Showing Bullish

Posted on Tuesday, August 12, 2008 8:07 AM

Energy East (NYSE: EAS) closed yesterday at $25.75. So far the stock has hit a 52-week low of $22.26 and 52-week high of $27.90. Energy East stock has been showing support around 25.22 and resistance in the 26.36 range. Technical indicators for the stock are Bullish and S&P gives EAS a neutral 3 STAR (out of 5) hold rating. EAS appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at an Oct '08 22.50 covered call (EAS JX) for a net debit in the $21.55 area. That is also the break even stock price for this trade. This covered call has a 67 day duration, provides 16.31% downside protection and a 4.41% assigned return rate for a 24.02% annualized return rate (comparison purposes only). Energy East has a current annual dividend yield of 4.92%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]