Alcon (ACL) 10/29/09 PriceWatch Alert Targets 48.45% Return

Posted: Thursday, October 29, 2009 8:25 AM EDT

Alcon (NYSE: ACL) closed yesterday at $143.69. 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 139.45 and resistance in the 150.11 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 $140.49 area. That is also the break even stock price for this trade. This covered call has a 51 day duration, provides 2.23% downside protection and a 6.77% assigned return rate for a 48.45% annualized return rate (comparison purposes only). Alcon has a current annual dividend yield of 2.55%. [THA-Seven Summits Research]

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