Fortune Brands (FO) Showing Bullish Technicals And Closed Yesterday Just Below Support

Fortune Brands (NYSE: FO) closed yesterday at $43.57. So far the stock has hit a 52-week low of $17.68 and 52-week high of $46.59. Fortune Brands stock has been showing support around 42.86 and resistance in the 44.36 range. Technical indicators for the stock are Bullish and S&P gives FO a weak 2 STAR (out of 5) sell rating. FO appears on the Investors Observer Analysts Favorites list. For a hedged play on this stock, look at a Jan '10 40 covered call (FO AH) for a net debit in the $38.37 area. That is also the break even stock price for this trade. This covered call has a 93 day duration, provides 11.93% downside protection and a 4.25% assigned return rate for a 16.67% annualized return rate (comparison purposes only). Fortune Brands has a current annual dividend yield of 1.77%.

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