Jan 08, 2013 (Marketintelligencecenter.com via COMTEX) -- Netflix (NASDAQ:NFLX) closed Monday's trading session at $99.20. In the past year, the stock has hit a 52-week low of $52.81 and 52-week high of $133.43. Netflix (NFLX) stock has been showing support around $93.39 and resistance in the $104.65 range. Technical indicators for the stock are Bullish and S&P gives Netflix (NFLX) a neutral 3 STARS (out of 5) hold rating. For a hedged play on Netflix (NFLX), look at the Mar '13 $97.50 covered call for a net debit in the $88.10 area. That is also the break-even stock price for this trade. This covered call has a duration of 67 days, provides 11.19% downside protection and an assigned return rate of 10.67% for an annualized return rate of 58.13% (for comparison purposes only). A lower-cost hedged play for Netflix (NFLX) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the Netflix (NFLX) Jan '14 $50.00 call and selling the Mar '13 $97.50 call for a total debit of $40.45. The trade has a lifespan of 67 days and would provide 8.82% downside protection and an assigned return rate of 17.43% for an annualized return rate of 95% (for comparison purposes only). Netflix (NFLX) has a current trailing average dividend yield of 0%.
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