May 10, 2013 (Marketintelligencecenter.com via COMTEX) -- Louisiana-Pacific Corp (NYSE:LPX) closed Thursday's trading session at $19.60. In the past year, the stock has hit a 52-week low of $8.36 and 52-week high of $22.55. Louisiana Pacific (LPX) stock has been showing support around $19.06 and resistance in the $20.18 range. Technical indicators for the stock are Bearish and S&P gives Louisiana Pacific (LPX) a positive 4 STARS (out of 5) buy rating. For a hedged play on Louisiana Pacific (LPX), look at the Nov '13 $19.00 covered call for a net debit in the $17.00 area. That is also the break-even stock price for this trade. This covered call has a duration of 190 days, provides 13.27% downside protection and an assigned return rate of 11.76% for an annualized return rate of 22.60% (for comparison purposes only). A lower-cost hedged play for Louisiana Pacific (LPX) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the Louisiana Pacific (LPX) Jan '14 $15.00 call and selling the Nov '13 $19.00 call for a total debit of $3.00. The trade has a lifespan of 190 days and would provide 8.16% downside protection and an assigned return rate of 33.33% for an annualized return rate of 64% (for comparison purposes only). Louisiana Pacific (LPX) has a current trailing average dividend yield of 0%.
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As of Monday, 05-06-2013 23:59, the latest Comtex SmarTrendA? Alert,
an automated pattern recognition system, indicated an UPTREND on
05-01-2012 for LPX @ $9.14.
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