Wisconsin Energy (WEC) PriceWatch Alert Targets 15.25% Return

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

Wisconsin Energy (NYSE: WEC) closed yesterday at $40.35. So far the stock has hit a 52-week low of $34.89 and 52-week high of $47.24. Wisconsin Energy stock has been showing support around 39.76 and resistance in the 41.54 range. Technical indicators for the stock are Bullish and S&P gives WEC a neutral 3 STAR (out of 5) hold rating. WEC appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Oct '09 40 covered call (WEC JH) for a net debit in the $38.35 area. That is also the break even stock price for this trade. This covered call has a 103 day duration, provides 4.96% downside protection and a 4.30% assigned return rate for a 15.25% annualized return rate (comparison purposes only). Wisconsin Energy has a current annual dividend yield of 3.28%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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