Archer Daniels Midland (ADM) PriceWatch Alert Targets 26.46% Downside Protection

Posted on Monday, October 06, 2008 8:07 AM

Archer Daniels Midland (NYSE: ADM) ended the last trading session at $18.52. 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 17.33 and resistance in the 20.79 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 $13.62 area. That is also the break even stock price for this trade. This covered call has a 166 day duration, provides 26.46% downside protection and a 10.13% assigned return rate for a 22.28% annualized return rate (comparison purposes only). Archer Daniels Midland has a current annual dividend yield of 2.43%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]