Archer Daniels Midland (ADM) PriceWatch Alert At $13.82 Break Even

Posted on Friday, October 03, 2008 8:07 AM

Archer Daniels Midland (NYSE: ADM) closed yesterday at $18.72. So far the stock has hit a 52-week low of $18.11 and 52-week high of $48.95. Archer Daniels Midland stock has been showing support around 16.21 and resistance in the 22.51 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 15 covered call (ADM CC) for a net debit in the $13.82 area. That is also the break even stock price for this trade. This covered call has a 169 day duration, provides 26.18% downside protection and an 8.54% assigned return rate for an 18.44% annualized return rate (comparison purposes only). Archer Daniels Midland has a current annual dividend yield of 2.37%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]