May 10, 2013 (Marketintelligencecenter.com via COMTEX) -- Gannett Co Inc. (NYSE:GCI) closed Thursday's trading session at $21.12. In the past year, the stock has hit a 52-week low of $12.17 and 52-week high of $22.21. Gannett (GCI) stock has been showing support around $20.39 and resistance in the $21.49 range. Technical indicators for the stock are Bullish and S&P gives Gannett (GCI) a neutral 3 STARS (out of 5) hold rating. For a hedged play on Gannett (GCI), look at the Oct '13 $21.00 covered call for a net debit in the $19.27 area. That is also the break-even stock price for this trade. This covered call has a duration of 162 days, provides 8.76% downside protection and an assigned return rate of 8.98% for an annualized return rate of 20.23% (for comparison purposes only). A lower-cost hedged play for Gannett (GCI) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the Gannett (GCI) Jan '14 $17.00 call and selling the Oct '13 $21.00 call for a total debit of $2.85. The trade has a lifespan of 162 days and would provide 6.01% downside protection and an assigned return rate of 40.35% for an annualized return rate of 91% (for comparison purposes only). Gannett (GCI) has a current annual dividend yield of 3.91%.
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As of Monday, 05-06-2013 23:59, the latest Comtex SmarTrendA? Alert,
an automated pattern recognition system, indicated a DOWNTREND on
04-18-2012 for GCI @ $13.90.
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