Family Dollar Stores (FDO) 11/6/09 PriceWatch Alert Targets 7.85% Downside Protection

Posted: Friday, November 06, 2009 8:47 AM EDT

Family Dollar Stores (NYSE: FDO) closed yesterday at $28.68. So far the stock has hit a 52-week low of $21.79 and 52-week high of $35.00. Family Dollar Stores stock has been showing support around 27.77 and resistance in the 29.17 range. Technical indicators for the stock are Bearish and S&P gives FDO a very positive 5 STAR (out of 5) strong buy rating. FDO appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Jan '10 27.50 covered call (FDO AY) for a net debit in the $26.43 area. That is also the break even stock price for this trade. This covered call has a 71 day duration, provides 7.85% downside protection and a 4.05% assigned return rate for a 20.81% annualized return rate (comparison purposes only). Family Dollar Stores has a current annual dividend yield of 1.90%. [FBB-Seven Summits Research]

Click Symbol For More News On: (FDO)