Century Aluminum (CENX) Showing Bearish Technicals With Support At $14.07

Century Aluminum (NASDAQ:CENX) closed Friday's deflating trading session at $14.64. In the past year, the stock has hit a 52-week low of $8.25 and 52-week high of $20.76. Century Aluminum stock has been showing support around $14.07 and resistance in the $15.15 range. Technical indicators for the stock are Bearish. For a hedged play on this stock, look at the Jan '12 $12.50 covered call for a net debit in the $11.29 area. That is also the break-even stock price for this trade. This covered call has a duration of 222 days, provides 22.88% downside protection and an assigned return rate of 10.72% for an annualized return rate of 17.62% (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 CENX Jan '12 $7.50 call and selling the Jan '12 $12.50 call for a total debit of $3.90. The trade has a lifespan of 222 days and would provide 22.13% downside protection and an assigned return rate of 28.21% for an annualized return rate of 46.37% (for comparison purposes only). Century Aluminum does not pay dividends at this time