Alcon (ACL) 11/4/09 PriceWatch Alert Down To $137.90 Break Even

Posted: Wednesday, November 04, 2009 8:29 AM EDT

Alcon (NYSE: ACL) closed yesterday at $141.60. 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 138.17 and resistance in the 144.71 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 $137.90 area. That is also the break even stock price for this trade. This covered call has a 73 day duration, provides 2.61% downside protection and an 8.77% assigned return rate for a 43.87% annualized return rate (comparison purposes only). Alcon has a current annual dividend yield of 2.55%. [WBA-Seven Summits Research]

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