Ameren (AEE) PriceWatch Alert Bearish Price Movement

Posted on Wednesday, September 03, 2008 8:07 AM

Ameren (NYSE: AEE) ended the last trading session at $41.28. 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 40.16 and resistance in the 43.02 range. Technical indicators for the stock are Bearish 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 Dec '08 40 covered call (AEE LH) for a net debit in the $39.08 area. That is also the break even stock price for this trade. This covered call has a 108 day duration, provides 5.33% downside protection and a 2.35% assigned return rate for a 7.96% annualized return rate (comparison purposes only). Ameren has a current annual dividend yield of 5.96%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]