Estee Lauder (EL) 11/20/09 PriceWatch Alert Targets 10.50% Downside Protection

Posted: Friday, November 20, 2009 8:13 AM EDT

Estee Lauder (NYSE: EL) closed yesterday at $47.61. So far the stock has hit a 52-week low of $19.81 and 52-week high of $49.09. Estee Lauder stock has been showing support around 46.39 and resistance in the 48.55 range. Technical indicators for the stock are Bullish and S&P gives EL a neutral 3 STAR (out of 5) hold rating. EL appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at an Apr '10 45 covered call (EL DI) for a net debit in the $42.61 area. That is also the break even stock price for this trade. This covered call has a 148 day duration, provides 10.50% downside protection and a 5.61% assigned return rate for a 13.83% annualized return rate (comparison purposes only). Estee Lauder has a current annual dividend yield of 1.12%. [FBB-Seven Summits Research]

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