America Movil SAB de CV (AMX) PriceWatch Alert Down To $46.28 Break Even

Posted on Thursday, August 14, 2008 8:07 AM

America Movil SAB de CV (NYSE: AMX) closed yesterday at $49.28. So far the stock has hit a 52-week low of $47.08 and 52-week high of $69.15. America Movil SAB de CV stock has been showing support around 46.83 and resistance in the 50.65 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 Momentum Plays list. For a hedged play on this stock, look at a Nov '08 50 covered call (AMX KJ) for a net debit in the $46.28 area. That is also the break even stock price for this trade. This covered call has a 100 day duration, provides 6.09% downside protection and an 8.04% assigned return rate for a 29.34% 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 '09 45 Call (AMX AI) and selling the Nov '08 50 call (AMX KJ) for a $3.65 debit. The trade has a 100 day life and would provide 1.28% downside protection and a 36.99% assigned return rate for a 135.00% annualized return rate (for comparison purposes only). America Movil SAB de CV has a current annual dividend yield of 4.71%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]