Tiffany(NYSE: TIF) closed yesterday at $29.97. So far the stock has hit a 52-week low of $16.70 and 52-week high of $45.80. Tiffany stock has been showing support around 28.63 and resistance in the 30.83 range. Technical indicators for the stock are Bullish and S&P gives TIF a neutral 3 STAR (out of 5) hold rating. TIF appears on the Investors Observer Analysts Favorites list. For a hedged play on this stock, look at a Feb 10 30 covered call (TIF BF) for a net debit in the $26.27 area. That is also the break even stock price for this trade. This covered call has an 184 day duration, provides 12.35% downside protection and a 14.20% assigned return rate for a 28.17% 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 TIF Jan 11 15 Call (VFF AC) and selling the Feb 10 30 call (TIF BF) for a $12.00 debit. The trade has an 184 day life and would provide 9.91% downside protection and a 25.00% assigned return rate for a 50.00% annualized return rate (for comparison purposes only). Tiffany has a current annual dividend yield of 2.31%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo.
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