May 10, 2013 (Marketintelligencecenter.com via COMTEX) -- IAC/InterActiveCorp (NASDAQ:IACI) closed Thursday's trading session at $48.78. In the past year, the stock has hit a 52-week low of $38.20 and 52-week high of $55.57. IAC InterActiveCorp (IACI) stock has been showing support around $47.89 and resistance in the $49.75 range. Technical indicators for the stock are Bullish and S&P gives IAC InterActiveCorp (IACI) a positive 4 STARS (out of 5) buy rating. For a hedged play on IAC InterActiveCorp (IACI), look at the Oct '13 $45.00 covered call for a net debit in the $43.08 area. That is also the break-even stock price for this trade. This covered call has a duration of 162 days, provides 11.69% downside protection and an assigned return rate of 4.46% for an annualized return rate of 10.04% (for comparison purposes only). A lower-cost hedged play for IAC InterActiveCorp (IACI) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the IAC InterActiveCorp (IACI) Jan '14 $40.00 call and selling the Oct '13 $45.00 call for a total debit of $4.45. The trade has a lifespan of 162 days and would provide 8.88% downside protection and an assigned return rate of 12.36% for an annualized return rate of 28% (for comparison purposes only). IAC InterActiveCorp (IACI) has a current annual dividend yield of 1.95%.

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