Limited Brands (LTD) PriceWatch Alert Targets 22.86% Return

Posted: Thursday, June 18, 2009 8:07 AM EDT

Limited Brands (NYSE: LTD) closed yesterday at $11.86. So far the stock has hit a 52-week low of $5.98 and 52-week high of $22.16. Limited Brands stock has been showing support around 11.19 and resistance in the 12.41 range. Technical indicators for the stock are Bullish and S&P gives LTD a neutral 3 STAR (out of 5) hold rating. LTD appears on the Investors Observer Analysts Favorites list. For a hedged play on this stock, look at a Nov '09 10 covered call (LTD KB) for a net debit in the $9.11 area. That is also the break even stock price for this trade. This covered call has a 156 day duration, provides 23.19% downside protection and a 9.77% assigned return rate for a 22.86% annualized return rate (comparison purposes only). Limited Brands has a current annual dividend yield of 4.80%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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