Aluminum Corporation of China (ACH) Showing Bullish Technicals With Resistance At $24.31

Aluminum Corp of China (NYSE: ACH) closed Thursday's trading session at $24.00. In the past year, the stock has hit a 52-week low of $18.03 and 52-week high of $26.80. Aluminum Corporation of China stock has been showing support around $23.69 and resistance in the $24.31 range. Technical indicators for the stock are Bullish. For a hedged play on this stock, look at the Aug '11 $23.00 covered call for a net debit in the $21.85 area. That is also the break-even stock price for this trade. This covered call has a duration of 117 days, provides 8.96% downside protection and an assigned return rate of 5.26% for an annualized return rate of 16.42% (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 Aug '11 $23.00 call for a total debit of $7.05. The trade has a lifespan of 117 days and would provide 8.13% downside protection and an assigned return rate of 13.48% for an annualized return rate of 42% (for comparison purposes only). Aluminum Corporation of China does not pay dividends at this time.