Ameren (AEE) 11/20/09 PriceWatch Alert With 6.31% Downside Protection
Posted: Friday, November 20, 2009 8:39 AM EDT
By: Market Intelligence Center Staff
Ameren (NYSE: AEE) closed yesterday at $25.35. So far the stock has hit a 52-week low of $19.51 and 52-week high of $35.58. Ameren stock has been showing support around 24.90 and resistance in the 26.02 range. Technical indicators for the stock are Bearish and S&P gives AEE a positive 4 STAR (out of 5) buy rating. AEE appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Jun '10 25 covered call (AEE FE) for a net debit in the $23.75 area. That is also the break even stock price for this trade. This covered call has a 211 day duration, provides 6.31% downside protection and a 5.26% assigned return rate for a 9.10% annualized return rate (comparison purposes only). Ameren has a current annual dividend yield of 5.95%. [FBB-Seven Summits Research]
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