Fortune Brands (FO) 11/2/09 PriceWatch Alert With Support Around $37.67

Posted: Monday, November 02, 2009 8:22 AM EDT

Fortune Brands (NYSE: FO) ended the last trading session at $38.95. 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 37.67 and resistance in the 40.87 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 $34.05 area. That is also the break even stock price for this trade. This covered call has a 75 day duration, provides 12.58% downside protection and a 2.79% assigned return rate for a 13.58% annualized return rate (comparison purposes only). Fortune Brands has a current annual dividend yield of 1.95%. [ABR-Seven Summits Research]

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