Energy East (EAS) PriceWatch Alert Technicals Showing Bullish

Posted on Wednesday, August 27, 2008 8:07 AM

Energy East (NYSE: EAS) closed yesterday at $26.48. 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 25.97 and resistance in the 27.15 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 $24.08 area. That is also the break even stock price for this trade. This covered call has a 143 day duration, provides 9.06% downside protection and a 3.82% assigned return rate for a 9.75% annualized return rate (comparison purposes only). Energy East has a current annual dividend yield of 4.60%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]