Ameren (AEE) PriceWatch Alert Up To 10.10% Return

Posted on Thursday, September 04, 2008 8:07 AM

Ameren (NYSE: AEE) closed yesterday at $40.55. 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 39.77 and resistance in the 41.83 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 $38.85 area. That is also the break even stock price for this trade. This covered call has a 107 day duration, provides 4.19% downside protection and a 2.96% assigned return rate for a 10.10% annualized return rate (comparison purposes only). Ameren has a current annual dividend yield of 6.07%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]