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Jan 03, 2013 (Marketintelligencecenter.com via COMTEX) -- Limited Brands Inc. (NYSE:LTD) closed Wednesday's trading session at $47.40. In the past year, the stock has hit a 52-week low of $38.45 and 52-week high of $52.50. Limited Brands (LTD) stock has been showing support around $46.05 and resistance in the $48.65 range. Technical indicators for the stock are Bearish and S&P gives Limited Brands (LTD) a positive 4 STARS (out of 5) buy rating. For a hedged play on Limited Brands (LTD), look at the May '13 $47.00 covered call for a net debit in the $44.10 area. That is also the break-even stock price for this trade. This covered call has a duration of 135 days, provides 6.96% downside protection and an assigned return rate of 6.58% for an annualized return rate of 17.78% (for comparison purposes only). A lower-cost hedged play for Limited Brands (LTD) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the Limited Brands (LTD) Jan '14 $36.00 call and selling the May '13 $47.00 call for a total debit of $9.15. The trade has a lifespan of 135 days and would provide 4.75% downside protection and an assigned return rate of 20.22% for an annualized return rate of 55% (for comparison purposes only). Limited Brands (LTD) has a current annual dividend yield of 2.18%.
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As of Sunday, 12-30-2012 23:59, the latest Comtex SmarTrendA? Alert,
an automated pattern recognition system, indicated a DOWNTREND on
05-17-2012 for LTD @ $46.97.
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.
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