Sempra Energy (SRE) 10/1/09 PriceWatch Alert With 3.01% Downside Protection
Posted: Thursday, October 01, 2009 8:02 AM EDT
By: Market Intelligence Center Staff
Sempra Energy (NYSE: SRE) closed yesterday at $49.81. So far the stock has hit a 52-week low of $34.29 and 52-week high of $53.00. Sempra Energy stock has been showing support around 49.23 and resistance in the 50.49 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 a Nov '09 50 covered call (SRE KJ) for a net debit in the $48.31 area. That is also the break even stock price for this trade. This covered call has a 51 day duration, provides 3.01% downside protection and a 3.50% assigned return rate for a 25.04% annualized return rate (comparison purposes only). Sempra Energy has a current annual dividend yield of 3.11%. [THA-Seven Summits Research]
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