Las Vegas Sands (LVS) 2/8/10 PriceWatch Alert Up To 16.23% Return

Posted: Monday, February 08, 2010 8:03 AM EDT
By: Market Intelligence Center Staff

Las Vegas Sands (NYSE: LVS) ended the last trading session at $15.71. So far the stock has hit a 52-week low of $1.38 and 52-week high of $20.73. Las Vegas Sands stock has been showing support around 14.56 and resistance in the 16.34 range. Technical indicators for the stock are Bearish 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 Jan '11 10 covered call for a net debit in the $8.66 area. That is also the break even stock price for this trade. This covered call has a 348 day duration, provides 44.88% downside protection and a 15.47% assigned return rate for a 16.23% 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 '11 5 Call and selling the Jan '11 10 call for a $4.00 debit. The trade has a 348 day life and would provide 42.71% downside protection and a 25.00% assigned return rate for a 26.00% annualized return rate (for comparison purposes only). Las Vegas Sands does not pay dividends at this time. [ABR-Seven Summits Research]