AES (AES) PriceWatch Alert With $11.35 Break Even

Posted on Friday, September 12, 2008 8:07 AM

AES (NYSE: AES) closed yesterday at $13.55. 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 13.21 and resistance in the 14.13 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 Feb '09 12.50 covered call (AES BV) for a net debit in the $11.35 area. That is also the break even stock price for this trade. This covered call has a 162 day duration, provides 16.24% downside protection and a 10.13% assigned return rate for a 22.83% 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]