Fortune Brands (FO) 10/29/09 PriceWatch Alert Support At Around $37.68

Posted: Thursday, October 29, 2009 8:18 AM EDT

Fortune Brands (NYSE: FO) closed yesterday at $39.03. 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 37.68 and resistance in the 41.50 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 Jan '10 35 covered call (FO AG) for a net debit in the $34.03 area. That is also the break even stock price for this trade. This covered call has a 79 day duration, provides 12.81% downside protection and a 2.85% assigned return rate for a 13.17% annualized return rate (comparison purposes only). Fortune Brands has a current annual dividend yield of 1.84%. [THA-Seven Summits Research]

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