Posted: Tuesday, August 02, 2011

Aluminum Corporation of China (NYSE:ACH) closed Monday's seesaw trading session at $21.30. In the past year, the stock has hit a 52-week low of $19.21 and 52-week high of $26.80. Aluminum Corporation of China (ACH) stock has been showing support around $20.63 and resistance in the $22.05 range. Technical indicators for the stock are Bullish. For a hedged play on Aluminum Corporation of China (ACH), look at the Jan '12 $21.00 covered call for a net debit in the $19.50 area. That is also the break-even stock price for this trade. This covered call has a duration of 172 days, provides 8.45% downside protection and an assigned return rate of 7.69% for an annualized return rate of 16.32% (for comparison purposes only). Aluminum Corporation of China (ACH) has a current annual dividend yield of 0.16%. [ATU-Seven Summits Research]