May 10, 2013 (Marketintelligencecenter.com via COMTEX) -- National Semiconductor Corp (NYSE:NSM) closed Thursday's trading session at $42.35. In the past year, the stock has hit a 52-week low of $14.03 and 52-week high of $42.61. Nationstar Mortgage (NSM) stock has been showing support around $40.39 and resistance in the $43.59 range. Technical indicators for the stock are Bullish. For a hedged play on Nationstar Mortgage (NSM), look at the Jul '13 $40.00 covered call for a net debit in the $38.45 area. That is also the break-even stock price for this trade. This covered call has a duration of 71 days, provides 9.21% downside protection and an assigned return rate of 4.03% for an annualized return rate of 20.72% (for comparison purposes only). A lower-cost hedged play for Nationstar Mortgage (NSM) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the Nationstar Mortgage (NSM) Jan '14 $22.50 call and selling the Jul '13 $40.00 call for a total debit of $16.35. The trade has a lifespan of 71 days and would provide 8.26% downside protection and an assigned return rate of 7.03% for an annualized return rate of 36% (for comparison purposes only). Nationstar Mortgage (NSM) has a current trailing average dividend yield of 0%.

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