Nalco (NLC) Showing Bearish Technicals With 0.51% Dividend Yield

Nalco (NYSE:NLC) closed Tuesday's negative trading session at $26.78. In the past year, the stock has hit a 52-week low of $20.15 and 52-week high of $32.62. Nalco stock has been showing support around $26.43 and resistance in the $27.29 range. Technical indicators for the stock are Bearish and S&P gives NLC a neutral 3 STARS (out of 5) hold rating. For a hedged play on this stock, look at the Jun '11 $26.00 covered call for a net debit in the $25.08 area. That is also the break-even stock price for this trade. This covered call has a duration of 66 days, provides 6.35% downside protection and an assigned return rate of 3.67% for an annualized return rate of 20.29% (for comparison purposes only). Nalco has a current annual dividend yield of 0.51%.