Ameren (AEE) PriceWatch Alert With Support Around $39.58

Posted on Friday, September 05, 2008 8:07 AM

Ameren (NYSE: AEE) closed yesterday at $40.26. 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 39.58 and resistance in the 41.00 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 $38.56 area. That is also the break even stock price for this trade. This covered call has a 106 day duration, provides 4.22% downside protection and a 3.73% assigned return rate for a 12.86% 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]