Aluminum Corporation of China Showing Bullish Technicals With Support At $23.37

Aluminum Corp of China （NYSE: ACH） closed Thursday's trading session at $23.76. In the past year, the stock has hit a 52-week low of $18.03 and 52-week high of $31.75. Aluminum Corporation of China stock has been showing support around $23.37 and resistance in the $24.37 range. Technical indicators for the stock are Bullish. For a hedged play on this stock, look at the May '11 $23.00 covered call for a net debit in the $21.46 area. That is also the break-even stock price for this trade. This covered call has a duration of 127 days, provides 9.68% downside protection and an assigned return rate of 7.18% for an annualized return rate of 20.62% （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 $15.00 call and selling the May '11 $23.00 call for a total debit of $6.95. The trade has a lifespan of 127 days and would provide 7.62% downside protection and an assigned return rate of 15.11% for an annualized return rate of 43% （for comparison purposes only）。 Aluminum Corporation of China does not pay dividends at this time. [THA-Seven Summits Research]