AES (AES) PriceWatch Alert With Support Around $13.07

Posted on Monday, September 15, 2008 8:07 AM

AES (NYSE: AES) ended the last trading session at $14.22. 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 13.07 and resistance in the 14.89 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 $11.57 area. That is also the break even stock price for this trade. This covered call has a 159 day duration, provides 18.64% downside protection and an 8.04% assigned return rate for an 18.45% 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]