FirstEnergy (FE) 11/6/09 PriceWatch Alert Down To $38.41 Break Even

Posted: Friday, November 06, 2009 8:30 AM EDT

FirstEnergy (NYSE: FE) closed yesterday at $42.61. 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 41.86 and resistance in the 43.10 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 $38.41 area. That is also the break even stock price for this trade. This covered call has a 162 day duration, provides 9.86% downside protection and a 4.14% assigned return rate for a 9.33% annualized return rate (comparison purposes only). FirstEnergy has a current annual dividend yield of 5.23%. [FBB-Seven Summits Research]

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