Aluminum Corp of China （NYSE: ACH） closed Friday's trading session at $23.10. In the past year, the stock has hit a 52-week low of $18.03 and 52-week high of $34.27.
Aluminum Corporation of China stock has been showing support around $22.53 and resistance in the $23.41 range. Technical indicators for the stock are Neutral. For a hedged play on this stock, look at the May '11 $23.00 covered call for a net debit in the $21.05 area. That is also the break-even stock price for this trade. This covered call has a duration of 166 days, provides 8.87% downside protection and an assigned return rate of 9.26% for an annualized return rate of 20.37% （for 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 ACH Jan '12 $12.50 call and selling the May '11 $23.00 call for a total debit of $9.85. The trade has a lifespan of 166 days and would provide 3.25% downside protection and an assigned return rate of 6.60% for an annualized return rate of 15% （for comparison purposes only）。 Aluminum Corporation of China does not pay dividends at this time
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