Alcon (ACL) 10/27/09 PriceWatch Alert With $139.83 Break Even

Posted: Tuesday, October 27, 2009 8:43 AM EDT

Alcon (NYSE: ACL) closed yesterday at $142.83. So far the stock has hit a 52-week low of $66.64 and 52-week high of $148.85. Alcon stock has been showing support around 138.62 and resistance in the 150.34 range. Technical indicators for the stock are Bullish and S&P gives ACL a positive 4 STAR (out of 5) buy rating. ACL appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Dec '09 150 covered call (ACL LJ) for a net debit in the $139.83 area. That is also the break even stock price for this trade. This covered call has a 53 day duration, provides 2.10% downside protection and a 7.27% assigned return rate for a 50.09% annualized return rate (comparison purposes only). Alcon has a current annual dividend yield of 2.47%. [ATU-Seven Summits Research]

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