Feb 12, 2013 (Marketintelligencecenter.com via COMTEX) -- Franklin Resources Inc. (NYSE:BEN) closed Monday's trading session at $140.16. In the past year, the stock has hit a 52-week low of $100.91 and 52-week high of $140.81. Franklin Resources (BEN) stock has been showing support around $139.29 and resistance in the $140.93 range. Technical indicators for the stock are Bullish and S&P gives Franklin Resources (BEN) a positive 4 STARS (out of 5) buy rating. For a hedged play on Franklin Resources (BEN), look at the Apr '13 $140.00 covered call for a net debit in the $136.46 area. That is also the break-even stock price for this trade. This covered call has a duration of 67 days, provides 2.64% downside protection and an assigned return rate of 2.59% for an annualized return rate of 14.13% (for comparison purposes only). A lower-cost hedged play for Franklin Resources (BEN) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the Franklin Resources (BEN) Jan '14 $100.00 call and selling the Apr '13 $140.00 call for a total debit of $37.90. The trade has a lifespan of 67 days and would provide 1.61% downside protection and an assigned return rate of 5.54% for an annualized return rate of 30% (for comparison purposes only). Franklin Resources (BEN) has a current annual dividend yield of 0.83%.
MarketIntelligenceCenter.com
(C) Copyright 2013, Marketintelligencecenter.com. All rights reserved.
**********************************************************************
As of Friday, 02-08-2013 23:59, the latest Comtex SmarTrendA? Alert,
an automated pattern recognition system, indicated an UPTREND on
06-07-2012 for BEN @ $109.41.
For more information on SmarTrend, contact your market data
provider or go to www.mysmartrend.com
SmarTrend is a registered trademark of Comtex News Network, Inc.
Copyright A? 2004-2013 Comtex News Network, Inc. All rights reserved.
