Sempra Energy (SRE) PriceWatch Alert With 4.11% Downside Protection

Posted: Monday, July 06, 2009 8:07 AM EDT

Sempra Energy (NYSE: SRE) closed yesterday at $48.67. So far the stock has hit a 52-week low of $34.29 and 52-week high of $58.99. Sempra Energy stock has been showing support around 47.82 and resistance in the 49.34 range. Technical indicators for the stock are Bullish and S&P gives SRE a very positive 5 STAR (out of 5) strong buy rating. SRE appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Oct '09 50 covered call (SRE JJ) for a net debit in the $46.67 area. That is also the break even stock price for this trade. This covered call has a 103 day duration, provides 4.11% downside protection and a 7.14% assigned return rate for a 25.28% annualized return rate (comparison purposes only). Sempra Energy has a current annual dividend yield of 3.07%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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