Ameren (AEE) PriceWatch Alert Targets 8.22% Downside Protection

Posted on Thursday, August 28, 2008 8:07 AM

Ameren (NYSE: AEE) closed yesterday at $42.60. 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 41.79 and resistance in the 43.11 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 $39.10 area. That is also the break even stock price for this trade. This covered call has a 205 day duration, provides 8.22% downside protection and a 2.30% assigned return rate for a 4.10% annualized return rate (comparison purposes only). Ameren has a current annual dividend yield of 5.98%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]