Archer Daniels Midland (ADM) PriceWatch Alert With Support Around $22.31

Posted on Monday, September 29, 2008 8:07 AM

Archer Daniels Midland (NYSE: ADM) ended the last trading session at $22.88. So far the stock has hit a 52-week low of $19.70 and 52-week high of $48.95. Archer Daniels Midland stock has been showing support around 22.31 and resistance in the 23.57 range. Technical indicators for the stock are Bearish and S&P gives ADM a positive 4 STAR (out of 5) buy rating. ADM appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Dec '08 20 covered call (ADM LD) for a net debit in the $19.08 area. That is also the break even stock price for this trade. This covered call has an 82 day duration, provides 16.61% downside protection and a 4.82% assigned return rate for a 21.46% annualized return rate (comparison purposes only). Archer Daniels Midland has a current annual dividend yield of 2.20%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]