Las Vegas Sands (NYSE: LVS) closed yesterday at $29.39. So far the stock has hit a 52-week low of $12.95 and 52-week high of $30.47. Las Vegas Sands stock has been showing support around 27.86 and resistance in the 30.28 range. Technical indicators for the stock are Bullish and S&P gives LVS a neutral 3 STAR (out of 5) hold rating. LVS appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Dec '10 26 covered call for a net debit in the $24.04 area. That is also the break even stock price for this trade. This covered call has a 107 day duration, provides 18.20% downside protection and an 8.15% assigned return rate for a 27.81% annualized return rate (comparison purposes only). A lower cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the LVS Jan '12 2.50 Call and selling the Dec '10 26 call for a $21.40 debit. The trade has a 107 day life and would provide 18.68% downside protection and a 9.81% assigned return rate for a 33.00% annualized return rate (for comparison purposes only). Las Vegas Sands does not pay dividends at this time.
www.marketintelligencecenter.com/articles/1178961
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