May 14, 2013 (Marketintelligencecenter.com via COMTEX) -- Lennar Corp (NYSE:LEN) closed Monday's trading session at $43.24. In the past year, the stock has hit a 52-week low of $23.48 and 52-week high of $43.90. Lennar (LEN) stock has been showing support around $42.06 and resistance in the $44.02 range. Technical indicators for the stock are Bullish and S&P gives Lennar (LEN) a neutral 3 STARS (out of 5) hold rating. For a hedged play on Lennar (LEN), look at the Aug '13 $43.00 covered call for a net debit in the $40.24 area. That is also the break-even stock price for this trade. This covered call has a duration of 95 days, provides 6.94% downside protection and an assigned return rate of 6.86% for an annualized return rate of 26.35% (for comparison purposes only). A lower-cost hedged play for Lennar (LEN) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the Lennar (LEN) Jan '14 $30.00 call and selling the Aug '13 $43.00 call for a total debit of $10.90. The trade has a lifespan of 95 days and would provide 5.41% downside protection and an assigned return rate of 19.27% for an annualized return rate of 74% (for comparison purposes only). Lennar (LEN) has a current annual dividend yield of 0.38%.
MarketIntelligenceCenter.com
(C) Copyright 2013, Marketintelligencecenter.com. All rights reserved.
**********************************************************************
As of Friday, 05-10-2013 23:59, the latest Comtex SmarTrendA? Alert,
an automated pattern recognition system, indicated a DOWNTREND on
06-01-2012 for LEN @ $25.48.
For more information on SmarTrend, contact your market data
provider or go to www.mysmartrend.com
SmarTrend is a registered trademark of Comtex News Network, Inc.
Copyright A? 2004-2013 Comtex News Network, Inc. All rights reserved.
