Sempra Energy (SRE) 10/2/09 PriceWatch Alert At $48.26 Break Even
Posted: Friday, October 02, 2009 8:20 AM EDT
By: Market Intelligence Center Staff
Sempra Energy (NYSE: SRE) closed yesterday at $49.86. 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 49.30 and resistance in the 50.38 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 $48.26 area. That is also the break even stock price for this trade. This covered call has a 50 day duration, provides 3.21% downside protection and a 3.61% assigned return rate for a 26.32% annualized return rate (comparison purposes only). Sempra Energy has a current annual dividend yield of 3.11%. [FBB-Seven Summits Research]
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