May 10, 2013 (Marketintelligencecenter.com via COMTEX) -- Limited Brands Inc. (NYSE:LTD) closed Thursday's trading session at $52.08. In the past year, the stock has hit a 52-week low of $40.32 and 52-week high of $53.33. Limited Brands (LTD) stock has been showing support around $51.29 and resistance in the $53.17 range. Technical indicators for the stock are Bullish and S&P gives Limited Brands (LTD) a positive 4 STARS (out of 5) buy rating. For a hedged play on Limited Brands (LTD), look at the Aug '13 $50.00 covered call for a net debit in the $48.48 area. That is also the break-even stock price for this trade. This covered call has a duration of 99 days, provides 6.91% downside protection and an assigned return rate of 3.14% for an annualized return rate of 11.56% (for comparison purposes only). A lower-cost hedged play for Limited Brands (LTD) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the Limited Brands (LTD) Jan '14 $39.00 call and selling the Aug '13 $50.00 call for a total debit of $9.85. The trade has a lifespan of 99 days and would provide 6.20% downside protection and an assigned return rate of 11.68% for an annualized return rate of 43% (for comparison purposes only). Limited Brands (LTD) has a current annual dividend yield of 2.28%.
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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
05-17-2012 for LTD @ $46.97.
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provider or go to www.mysmartrend.com
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