Burger King (BKC) Could Be On The Move Today

Posted: Thursday, November 19, 2009 9:08 AM EDT

Burger King (NYSE: BKC) closed yesterday at $17.64. So far the stock has hit a 52-week low of $15.61 and 52-week high of $24.48. Burger King stock has been showing support around 17.19 and resistance in the 17.87 range. Technical indicators for the stock are Bullish and S&P gives BKC a neutral 3 STAR (out of 5) hold rating. BKC appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Apr '10 17.50 covered call (BKC DW) for a net debit in the $16.39 area. That is also the break even stock price for this trade. This covered call has a 149 day duration, provides 7.09% downside protection and a 6.77% assigned return rate for a 16.59% annualized return rate (comparison purposes only). Burger King has a current annual dividend yield of 1.45%. [THA-Seven Summits Research]

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