May 14, 2013 (Marketintelligencecenter.com via COMTEX) -- Kohl's Corp (NYSE:KSS) closed Monday's trading session at $48.17. In the past year, the stock has hit a 52-week low of $41.35 and 52-week high of $55.25. Kohls (KSS) stock has been showing support around $47.52 and resistance in the $49.36 range. Technical indicators for the stock are Bullish and S&P gives Kohls (KSS) a weak 2 STARS (out of 5) sell rating. For a hedged play on Kohls (KSS), look at the Jul '13 $48.00 covered call for a net debit in the $46.17 area. That is also the break-even stock price for this trade. This covered call has a duration of 67 days, provides 4.15% downside protection and an assigned return rate of 3.96% for an annualized return rate of 21.59% (for comparison purposes only). A lower-cost hedged play for Kohls (KSS) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the Kohls (KSS) Jan '14 $40.00 call and selling the Jul '13 $48.00 call for a total debit of $7.00. The trade has a lifespan of 67 days and would provide 2.43% downside protection and an assigned return rate of 14.29% for an annualized return rate of 78% (for comparison purposes only). Kohls (KSS) has a current annual dividend yield of 2.90%.
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As of Friday, 05-10-2013 23:59, the latest Comtex SmarTrendA? Alert,
an automated pattern recognition system, indicated a DOWNTREND on
05-31-2012 for KSS @ $46.59.
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