America Movil SAB de CV (AMX) 11/3/09 PriceWatch Alert Up To 30.98% Return

Posted: Tuesday, November 03, 2009 8:31 AM EDT
By: Market Intelligence Center Staff

America Movil SAB de CV (NYSE: AMX) closed yesterday at $44.80. So far the stock has hit a 52-week low of $23.35 and 52-week high of $48.96. America Movil SAB de CV stock has been showing support around 43.35 and resistance in the 46.37 range. Technical indicators for the stock are Bearish and S&P gives AMX a neutral 3 STAR (out of 5) hold rating. AMX appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Jan '10 44 covered call (AJQ AA) for a net debit in the $41.40 area. That is also the break even stock price for this trade. This covered call has a 74 day duration, provides 7.59% downside protection and a 6.28% assigned return rate for a 30.98% annualized return rate (comparison purposes only). A lower cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the AMX Jan '11 25 Call (OXZ AE) and selling the Jan '10 44 call (AJQ AA) for a $17.35 debit. The trade has a 74 day life and would provide 5.47% downside protection and a 9.51% assigned return rate for a 47.00% annualized return rate (for comparison purposes only). America Movil SAB de CV has a current annual dividend yield of 1.00%. [ATU-Seven Summits Research]