May 09, 2013 (Marketintelligencecenter.com via COMTEX) -- TJX Companies Inc. (NYSE:TJX) closed Wednesday's trading session at $50.40. In the past year, the stock has hit a 52-week low of $39.46 and 52-week high of $50.61. TJX (TJX) stock has been showing support around $49.47 and resistance in the $51.07 range. Technical indicators for the stock are Bullish and S&P gives TJX (TJX) a positive 4 STARS (out of 5) buy rating. For a hedged play on TJX (TJX), look at the Oct '13 $52.50 covered call for a net debit in the $49.00 area. That is also the break-even stock price for this trade. This covered call has a duration of 163 days, provides 2.78% downside protection and an assigned return rate of 7.14% for an annualized return rate of 15.99% (for comparison purposes only). A lower-cost hedged play for TJX (TJX) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the TJX (TJX) Jan '14 $45.00 call and selling the Oct '13 $52.50 call for a total debit of $5.20. The trade has a lifespan of 163 days and would provide 0.40% downside protection and an assigned return rate of 44.23% for an annualized return rate of 99% (for comparison purposes only). TJX (TJX) has a current annual dividend yield of 0.93%.
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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
05-14-2012 for TJX @ $40.39.
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