Darden Restaurants (NYSE: DRI - option chain) shares are headed higher today after the company reported Q3 earnings yesterday after the close of 78 cents per share, which beat estimates of only 68 cents. Also, DRI raised its outlook for 2009 earnings as well.
The markets are taking this news today as some kind of a sign that the consumer is sticking with the casual dining atmosphere and rewarding DRI stock accordingly. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on DRI.
DRI opened this morning at $33.52. So far today the stock has hit a low of $33.12 and a high of $35.64. As of 11:20, DRI is trading at $34.94, up 5.04 (16.9%). The chart for DRI looks neutral and S&P gives DRI a 3 STARS (out of 5) hold ranking.
DRI hasn't been below $20 this year and has shown support around $24 recently.
Brent Archer is an options analyst and writer at Investors Observer.
DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in DRI.
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