Sempra Energy (SRE) Down Yesterday And Stock In Tight Support/Resistance Range

Posted: Wednesday, November 04, 2009 8:48 AM EDT

Sempra Energy (NYSE: SRE) closed yesterday at $49.63. So far the stock has hit a 52-week low of $36.43 and 52-week high of $53.75. Sempra Energy stock has been showing support around 48.74 and resistance in the 50.12 range. Technical indicators for the stock are Bearish 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 $47.73 area. That is also the break even stock price for this trade. This covered call has a 73 day duration, provides 3.83% downside protection and a 4.76% assigned return rate for a 23.78% annualized return rate (comparison purposes only). Sempra Energy has a current annual dividend yield of 3.03%. [WBA-Seven Summits Research]

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