Sempra Energy (SRE) 10/5/09 PriceWatch Alert Could Hit 18.10% Return
Posted: Monday, October 05, 2009 8:33 AM EDT
By: Market Intelligence Center Staff
Sempra Energy (NYSE: SRE) closed yesterday at $49.87. 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 48.94 and resistance in the 50.76 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 Jan '10 50 covered call (SRE AJ) for a net debit in the $47.57 area. That is also the break even stock price for this trade. This covered call has a 103 day duration, provides 4.61% downside protection and a 5.11% assigned return rate for an 18.10% annualized return rate (comparison purposes only). Sempra Energy has a current annual dividend yield of 3.13%. [ABR-Seven Summits Research]
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