Darden Restaurants (DRI) 10/29/09 PriceWatch Alert With 8.42% Downside Protection
Posted: Thursday, October 29, 2009 8:29 AM EDT
By: Market Intelligence Center Staff
Darden Restaurants (NYSE: DRI) closed yesterday at $30.87. So far the stock has hit a 52-week low of $13.21 and 52-week high of $41.21. Darden Restaurants stock has been showing support around 30.30 and resistance in the 31.90 range. Technical indicators for the stock are Bearish and S&P gives DRI a weak 2 STAR (out of 5) sell rating. DRI appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Jan '10 30 covered call (DRI AF) for a net debit in the $28.27 area. That is also the break even stock price for this trade. This covered call has a 79 day duration, provides 8.42% downside protection and a 6.12% assigned return rate for a 28.27% annualized return rate (comparison purposes only). Darden Restaurants has a current annual dividend yield of 3.19%. [THA-Seven Summits Research]
CLICK HERE: FREE Darden Restaurants (DRI) Stock ReportSee what our analysts have uncovered about Darden Restaurants (DRI).