Fortune Brands (FO) 11/20/09 PriceWatch Alert Could Hit 14.48% Return

Posted: Friday, November 20, 2009 8:24 AM EDT

Fortune Brands (NYSE: FO) closed yesterday at $38.61. So far the stock has hit a 52-week low of $17.68 and 52-week high of $46.77. Fortune Brands stock has been showing support around 37.15 and resistance in the 40.09 range. Technical indicators for the stock are Bearish and S&P gives FO a neutral 3 STAR (out of 5) hold rating. FO appears on the Investors Observer Analysts Favorites list. For a hedged play on this stock, look at a Mar '10 35 covered call (FO CG) for a net debit in the $33.41 area. That is also the break even stock price for this trade. This covered call has a 120 day duration, provides 13.47% downside protection and a 4.76% assigned return rate for a 14.48% annualized return rate (comparison purposes only). Fortune Brands has a current annual dividend yield of 1.88%. [FBB-Seven Summits Research]

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