May 14, 2013 (Marketintelligencecenter.com via COMTEX) -- Nordstrom Inc. (NYSE:JWN) closed Monday's trading session at $60.49. In the past year, the stock has hit a 52-week low of $46.27 and 52-week high of $60.56. Nordstrom (JWN) stock has been showing support around $58.50 and resistance in the $61.56 range. Technical indicators for the stock are Bullish and S&P gives Nordstrom (JWN) a positive 4 STARS (out of 5) buy rating. For a hedged play on Nordstrom (JWN), look at the Jul '13 $60.00 covered call for a net debit in the $58.26 area. That is also the break-even stock price for this trade. This covered call has a duration of 67 days, provides 3.69% downside protection and an assigned return rate of 2.99% for an annualized return rate of 16.27% (for comparison purposes only). A lower-cost hedged play for Nordstrom (JWN) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the Nordstrom (JWN) Jan '14 $50.00 call and selling the Jul '13 $60.00 call for a total debit of $8.97. The trade has a lifespan of 67 days and would provide 2.51% downside protection and an assigned return rate of 11.48% for an annualized return rate of 63% (for comparison purposes only). Nordstrom (JWN) has a current annual dividend yield of 2.05%.
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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
05-08-2012 for JWN @ $53.86.
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