May 13, 2013 (Marketintelligencecenter.com via COMTEX) -- MGM MIRAGE (NYSE:MGM) closed Friday's trading session at $15.61. In the past year, the stock has hit a 52-week low of $8.83 and 52-week high of $15.80. MGM Mirage (MGM) stock has been showing support around $14.84 and resistance in the $16.18 range. Technical indicators for the stock are Bullish and S&P gives MGM Mirage (MGM) a neutral 3 STARS (out of 5) hold rating. For a hedged play on MGM Mirage (MGM), look at the Sep '13 $15.00 covered call for a net debit in the $14.02 area. That is also the break-even stock price for this trade. This covered call has a duration of 131 days, provides 10.19% downside protection and an assigned return rate of 6.99% for an annualized return rate of 19.48% (for comparison purposes only). A lower-cost hedged play for MGM Mirage (MGM) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the MGM Mirage (MGM) Jan '14 $11.00 call and selling the Sep '13 $15.00 call for a total debit of $3.36. The trade has a lifespan of 131 days and would provide 8.01% downside protection and an assigned return rate of 19.05% for an annualized return rate of 53% (for comparison purposes only). MGM Mirage (MGM) has a current trailing average dividend yield of 0%.
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As of Thursday, 05-09-2013 23:59, the latest Comtex SmarTrendA? Alert,
an automated pattern recognition system, indicated a DOWNTREND on
05-07-2012 for MGM @ $12.29.
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