May 13, 2013 (Marketintelligencecenter.com via COMTEX) -- Masco Corp (NYSE:MAS) closed Friday's trading session at $21.56. In the past year, the stock has hit a 52-week low of $11.53 and 52-week high of $22.10. Masco (MAS) stock has been showing support around $20.82 and resistance in the $21.94 range. Technical indicators for the stock are Bullish and S&P gives Masco (MAS) a positive 4 STARS (out of 5) buy rating. For a hedged play on Masco (MAS), look at the Oct '13 $21.00 covered call for a net debit in the $19.46 area. That is also the break-even stock price for this trade. This covered call has a duration of 159 days, provides 9.74% downside protection and an assigned return rate of 7.91% for an annualized return rate of 18.17% (for comparison purposes only). A lower-cost hedged play for Masco (MAS) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the Masco (MAS) Jan '14 $16.00 call and selling the Oct '13 $21.00 call for a total debit of $4.00. The trade has a lifespan of 159 days and would provide 7.24% downside protection and an assigned return rate of 25.00% for an annualized return rate of 57% (for comparison purposes only). Masco (MAS) has a current annual dividend yield of 1.40%.
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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
05-18-2012 for MAS @ $11.98.
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