China Life Insurance (LFC) had a current annual dividend yield of 1.64%
Trading session was closed by China Life Insurance Co Ltd (NYSE: LFC) on Thursday at $48.00. The stock has reached a 52-week low of $47.16 and 52-week high of $70.71 last year. The stock of China Life Insurance (LFC) supports around $46.83 and resistance in the $48.65 range.
Bearish and S&P were technical indicators for the stock that gives China Life Insurance (LFC) a positive 4 STARS (out of 5) buy rating. You had to look on Aug ’11 $47.50 covered call for a net debit in the $46.00 area for a hedged play on China Life Insurance (LFC).
This thing is the break-even stock price for this trade. This covered call had an assigned return rate of 3.26% for an annualized return rate of 20.88% (for comparison purposes only), duration of 57 days and provided 4.17% downside protection. A longer-term call option would be used by a lower-cost hedged play for China Life Insurance (LFC) in place of the covered call stock purchase.
This strategy was used to looking at going long the China Life Insurance (LFC) Jan ’12 $35.00 call and sold the Aug ’11 $47.50 call for a total debt of $11.35. The trade had a lifespan of 57 days, an assigned return rate of 10.13% for an annualized return rate of 65% (for comparison purposes only) and would give 3.44% downside protection and.
