FirstEnergy (FE) 11/3/09 PriceWatch Alert Targets 8.95% Downside Protection

Posted: Tuesday, November 03, 2009 8:44 AM EDT

FirstEnergy (NYSE: FE) closed yesterday at $42.45. So far the stock has hit a 52-week low of $35.26 and 52-week high of $59.00. FirstEnergy stock has been showing support around 41.55 and resistance in the 43.85 range. Technical indicators for the stock are Bearish and S&P gives FE a neutral 3 STAR (out of 5) hold rating. FE appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at an Apr '10 40 covered call (FE DH) for a net debit in the $38.65 area. That is also the break even stock price for this trade. This covered call has a 165 day duration, provides 8.95% downside protection and a 3.49% assigned return rate for a 7.73% annualized return rate (comparison purposes only). FirstEnergy has a current annual dividend yield of 4.96%. [ATU-Seven Summits Research]

Click Symbol For More News On: (FE)