Fortune Brands (FO) 11/3/09 PriceWatch Alert Targets 15.70% Return

Posted: Tuesday, November 03, 2009 8:35 AM EDT

Fortune Brands (NYSE: FO) closed yesterday at $38.72. 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 37.36 and resistance in the 40.22 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 $33.92 area. That is also the break even stock price for this trade. This covered call has a 74 day duration, provides 12.40% downside protection and a 3.18% assigned return rate for a 15.70% annualized return rate (comparison purposes only). Fortune Brands has a current annual dividend yield of 1.88%. [ATU-Seven Summits Research]

Click Symbol For More News On: (FO)