Darden Restaurants (DRI) 11/3/09 PriceWatch Alert Shows Bearish Technicals

Posted: Tuesday, November 03, 2009 8:20 AM EDT

Darden Restaurants (NYSE: DRI) closed yesterday at $30.41. 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 29.56 and resistance in the 31.18 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 29 covered call (DRI AJ) for a net debit in the $27.61 area. That is also the break even stock price for this trade. This covered call has a 74 day duration, provides 9.21% downside protection and a 5.03% assigned return rate for a 24.83% annualized return rate (comparison purposes only). Darden Restaurants has a current annual dividend yield of 3.19%. [ATU-Seven Summits Research]

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