Alcon (ACL) 11/3/09 PriceWatch Alert Targets 2.74% Downside Protection

Posted: Tuesday, November 03, 2009 8:34 AM EDT

Alcon (NYSE: ACL) closed yesterday at $142.29. So far the stock has hit a 52-week low of $66.64 and 52-week high of $148.85. Alcon stock has been showing support around 140.24 and resistance in the 145.32 range. Technical indicators for the stock are Bullish and S&P gives ACL a positive 4 STAR (out of 5) buy rating. ACL appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Jan '10 150 covered call (ACL AJ) for a net debit in the $138.39 area. That is also the break even stock price for this trade. This covered call has a 74 day duration, provides 2.74% downside protection and an 8.39% assigned return rate for a 41.38% annualized return rate (comparison purposes only). Alcon has a current annual dividend yield of 2.52%. [ATU-Seven Summits Research]

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