YINGLI GRN ENGY ADR (YGE) PriceWatch Alert With $10.09 Break Even

Posted: Wednesday, July 29, 2009 8:07 AM EDT

YINGLI GRN ENGY ADR (NYSE: YGE) closed yesterday at $14.79. So far the stock has hit a 52-week low of $2.50 and 52-week high of $18.39. YINGLI GRN ENGY ADR stock has been showing support around 13.34 and resistance in the 15.64 range. Technical indicators for the stock are Bullish. YGE appears on the Investors Observer Stocks In The News list. YGE experience the Cramer Effect on Monday. On his CNBC show Mad Money Friday night, Jim Cramer recommended YGE and Suntech Power (STP) as two companies investors may want to consider. For a hedged play on this stock, look at a Jan '10 11 covered call (YGE AR) for a net debit in the $10.09 area. That is also the break even stock price for this trade. This covered call has a 171 day duration, provides 31.78% downside protection and a 9.02% assigned return rate for a 19.25% annualized return rate (comparison purposes only). A lower cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the YGE Jan '11 2.50 Call (VJF AZ) and selling the Jan '10 11 call (YGE AR) for a $7.65 debit. The trade has a 171 day life and would provide 31.37% downside protection and an 11.11% assigned return rate for a 24.00% annualized return rate (for comparison purposes only). YINGLI GRN ENGY ADR does not pay dividends at this time. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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