Fortune Brands (FO) Trading In Tight Support/Resistance Range

Posted: Wednesday, November 04, 2009 9:08 AM EDT

Fortune Brands (NYSE: FO) closed yesterday at $39.01. 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 37.98 and resistance in the 39.64 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 $34.01 area. That is also the break even stock price for this trade. This covered call has a 73 day duration, provides 12.82% downside protection and a 2.91% assigned return rate for a 14.55% annualized return rate (comparison purposes only). Fortune Brands has a current annual dividend yield of 1.95%. [WBA-Seven Summits Research]

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