AES (AES) PriceWatch Alert Up To 16.23% Downside Protection

Posted on Thursday, September 11, 2008 8:07 AM

AES (NYSE: AES) closed yesterday at $13.86. So far the stock has hit a 52-week low of $13.18 and 52-week high of $23.09. AES stock has been showing support around 13.01 and resistance in the 14.35 range. Technical indicators for the stock are Bearish and S&P gives AES a positive 4 STAR (out of 5) buy rating. AES appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Jan '09 12.50 covered call (AES AV) for a net debit in the $11.61 area. That is also the break even stock price for this trade. This covered call has a 128 day duration, provides 16.23% downside protection and a 7.67% assigned return rate for a 21.86% annualized return rate (comparison purposes only). AES does not pay dividends at this time. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]