Ameriprise Financial (AMP) 10/15/09 PriceWatch Alert Down To $33.33 Break Even

Posted: Thursday, October 15, 2009 8:10 AM EDT

Ameriprise Financial (NYSE: AMP) closed yesterday at $37.63. So far the stock has hit a 52-week low of $11.74 and 52-week high of $37.80. Ameriprise Financial stock has been showing support around 35.80 and resistance in the 38.62 range. Technical indicators for the stock are Bullish and S&P gives AMP a weak 2 STAR (out of 5) sell rating. AMP appears on the Investors Observer Stocks In The News list. Credit Suisse downgraded AMP Tuesday to Neutral from Outperform. For a hedged play on this stock, look at a Dec '09 35 covered call (AMP LG) for a net debit in the $33.33 area. That is also the break even stock price for this trade. This covered call has a 65 day duration, provides 11.43% downside protection and a 5.01% assigned return rate for a 28.14% annualized return rate (comparison purposes only). Ameriprise Financial has a current annual dividend yield of 1.84%. [THA-Seven Summits Research]

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