Archer Daniels Midland (ADM) PriceWatch Alert With $16.31 Break Even

Posted on Wednesday, October 01, 2008 8:07 AM

Archer Daniels Midland (NYSE: ADM) closed yesterday at $21.91. 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 19.76 and resistance in the 23.12 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 Mar '09 17.50 covered call (ADM CW) for a net debit in the $16.31 area. That is also the break even stock price for this trade. This covered call has a 171 day duration, provides 25.56% downside protection and a 7.30% assigned return rate for a 15.57% annualized return rate (comparison purposes only). Archer Daniels Midland has a current annual dividend yield of 2.27%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]