Las Vegas Sands (LVS) 3/15/10 PriceWatch Alert Technicals Showing Bullish

Posted: Monday, March 15, 2010 8:13 AM EDT
By: Market Intelligence Center Staff

Las Vegas Sands (NYSE: LVS) ended the last trading session at $19.59. So far the stock has hit a 52-week low of $1.81 and 52-week high of $20.73. Las Vegas Sands stock has been showing support around 19.14 and resistance in the 20.12 range. Technical indicators for the stock are Bullish and S&P gives LVS a weak 2 STAR (out of 5) sell rating. LVS appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Jun '10 17 covered call for a net debit in the $16.04 area. That is also the break even stock price for this trade. This covered call has a 96 day duration, provides 18.12% downside protection and a 5.99% assigned return rate for a 22.76% 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 Jun '10 17 call for an $11.20 debit. The trade has a 96 day life and would provide 17.30% downside protection and a 7.14% assigned return rate for a 27.00% annualized return rate (for comparison purposes only). Las Vegas Sands does not pay dividends at this time. [ABR-Seven Summits Research]