May 09, 2013 (Marketintelligencecenter.com via COMTEX) -- Popular (NASDAQ:BPOP) closed Wednesday's trading session at $29.46. In the past year, the stock has hit a 52-week low of $13.38 and 52-week high of $29.78. Popular (BPOP) stock has been showing support around $29.01 and resistance in the $29.73 range. Technical indicators for the stock are Bullish. For a hedged play on Popular (BPOP), look at the Jul '13 $29.00 covered call for a net debit in the $27.89 area. That is also the break-even stock price for this trade. This covered call has a duration of 72 days, provides 5.33% downside protection and an assigned return rate of 3.98% for an annualized return rate of 20.18% (for comparison purposes only). A lower-cost hedged play for Popular (BPOP) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the Popular (BPOP) Jan '14 $20.00 call and selling the Jul '13 $29.00 call for a total debit of $8.23. The trade has a lifespan of 72 days and would provide 4.18% downside protection and an assigned return rate of 9.36% for an annualized return rate of 47% (for comparison purposes only). Popular (BPOP) has a current trailing average dividend yield of 0%.

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