Posted: Monday, August 08, 2011

Aluminum Corporation of China (NYSE:ACH) closed Friday's volatile trading session at $18.92. In the past year, the stock has hit a 52-week low of $18.05 and 52-week high of $26.80. Aluminum Corporation of China (ACH) stock has been showing support around $17.35 and resistance in the $20.33 range. Technical indicators for the stock are Bearish. For a hedged play on Aluminum Corporation of China (ACH), look at the Jan '12 $17.50 covered call for a net debit in the $16.37 area. That is also the break-even stock price for this trade. This covered call has a duration of 166 days, provides 13.48% downside protection and an assigned return rate of 6.90% for an annualized return rate of 15.18% (for comparison purposes only). Aluminum Corporation of China (ACH) has a current annual dividend yield of 0.17%. [THA-Seven Summits Research]