Energy East (EAS) PriceWatch Alert for August 18, 2008

Posted on Monday, August 18, 2008 8:07 AM

Energy East (NYSE: EAS) ended the last trading session at $26.67. 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 26.01 and resistance in the 27.25 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 25 covered call (EAS JE) for a net debit in the $24.07 area. That is also the break even stock price for this trade. This covered call has a 61 day duration, provides 9.75% downside protection and a 3.86% assigned return rate for a 23.12% annualized return rate (comparison purposes only). Energy East has a current annual dividend yield of 4.84%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]