ABB Ltd (ABB) PriceWatch Alert With $22.21 Break Even

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

ABB Ltd (NYSE: ABB) ended the last trading session at $24.46. So far the stock has hit a 52-week low of $21.69 and 52-week high of $33.39. ABB stock has been showing support around 23.78 and resistance in the 25.60 range. Technical indicators for the stock are Bearish. ABB appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Mar '09 25 covered call (ABB CE) for a net debit in the $22.21 area. That is also the break even stock price for this trade. This covered call has a 199 day duration, provides 9.20% downside protection and a 12.56% assigned return rate for a 23.04% annualized return rate (comparison purposes only). ABB has a current annual dividend yield of 1.97%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]