Ameren (AEE) PriceWatch Alert With $38.73 Break Even

Posted on Tuesday, August 26, 2008 8:07 AM

Ameren (NYSE: AEE) closed yesterday at $42.03. So far the stock has hit a 52-week low of $38.92 and 52-week high of $54.74. Ameren stock has been showing support around 41.40 and resistance in the 42.74 range. Technical indicators for the stock are Bullish and S&P gives AEE a positive 4 STAR (out of 5) buy rating. AEE appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Mar '09 40 covered call (AEE CH) for a net debit in the $38.73 area. That is also the break even stock price for this trade. This covered call has a 207 day duration, provides 7.85% downside protection and a 3.28% assigned return rate for a 5.78% annualized return rate (comparison purposes only). Ameren has a current annual dividend yield of 6.04%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]