May 09, 2013 (Marketintelligencecenter.com via COMTEX) -- International Game Technology (NYSE:IGT) closed Wednesday's trading session at $17.34. In the past year, the stock has hit a 52-week low of $10.92 and 52-week high of $17.58. International Game Technology (IGT) stock has been showing support around $17.07 and resistance in the $17.61 range. Technical indicators for the stock are Bullish and S&P gives International Game Technology (IGT) a neutral 3 STARS (out of 5) hold rating. For a hedged play on International Game Technology (IGT), look at the Oct '13 $17.00 covered call for a net debit in the $15.79 area. That is also the break-even stock price for this trade. This covered call has a duration of 163 days, provides 8.94% downside protection and an assigned return rate of 7.66% for an annualized return rate of 17.16% (for comparison purposes only). A lower-cost hedged play for International Game Technology (IGT) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the International Game Technology (IGT) Jan '14 $14.00 call and selling the Oct '13 $17.00 call for a total debit of $2.40. The trade has a lifespan of 163 days and would provide 5.42% downside protection and an assigned return rate of 25.00% for an annualized return rate of 56% (for comparison purposes only). International Game Technology (IGT) has a current annual dividend yield of 1.84%.
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As of Sunday, 05-05-2013 23:59, the latest Comtex SmarTrendA? Alert,
an automated pattern recognition system, indicated a DOWNTREND on
05-01-2012 for IGT @ $15.61.
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