May 10, 2013 (Marketintelligencecenter.com via COMTEX) -- News Corp. (NASDAQ:NWSA) closed Thursday's trading session at $33.29. In the past year, the stock has hit a 52-week low of $18.32 and 52-week high of $34.04. News Corp. (NWSA) stock has been showing support around $32.40 and resistance in the $34.48 range. Technical indicators for the stock are Bullish and S&P gives News Corp. (NWSA) a positive 4 STARS (out of 5) buy rating. For a hedged play on News Corp. (NWSA), look at the Jul '13 $33.00 covered call for a net debit in the $31.79 area. That is also the break-even stock price for this trade. This covered call has a duration of 71 days, provides 4.51% downside protection and an assigned return rate of 3.81% for an annualized return rate of 19.57% (for comparison purposes only). A lower-cost hedged play for News Corp. (NWSA) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the News Corp. (NWSA) Jan '14 $25.00 call and selling the Jul '13 $33.00 call for a total debit of $7.10. The trade has a lifespan of 71 days and would provide 3.57% downside protection and an assigned return rate of 12.68% for an annualized return rate of 65% (for comparison purposes only). News Corp. (NWSA) has a current annual dividend yield of 0.53%.
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