Becton Dickinson (BDX) 11/23/09 PriceWatch Alert With 3.66% Downside Protection

Posted: Monday, November 23, 2009 8:41 AM EDT

Becton Dickinson (NYSE: BDX) closed yesterday at $73.70. So far the stock has hit a 52-week low of $58.14 and 52-week high of $77.11. Becton Dickinson stock has been showing support around 72.25 and resistance in the 75.71 range. Technical indicators for the stock are Bullish and S&P gives BDX a neutral 3 STAR (out of 5) hold rating. BDX appears on the Investors Observer Analysts Favorites list. For a hedged play on this stock, look at a Mar '10 75 covered call (BDX CO) for a net debit in the $71.00 area. That is also the break even stock price for this trade. This covered call has an 117 day duration, provides 3.66% downside protection and a 5.63% assigned return rate for a 17.58% annualized return rate (comparison purposes only). Becton Dickinson has a current annual dividend yield of 1.79%. [ABR-Seven Summits Research]

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