Energy East (EAS) PriceWatch Alert Targets 14.97% Return

Posted on Thursday, August 21, 2008 8:07 AM

Energy East (NYSE: EAS) closed yesterday at $25.86. 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 25.29 and resistance in the 26.33 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 a Jan '09 25 covered call (EAS AE) for a net debit in the $23.56 area. That is also the break even stock price for this trade. This covered call has a 149 day duration, provides 8.89% downside protection and a 6.11% assigned return rate for a 14.97% annualized return rate (comparison purposes only). Energy East has a current annual dividend yield of 4.65%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]