Posted: Thursday, July 21, 2011

Aluminum Corporation of China (NYSE:ACH) closed Wednesday's wandering trading session at $20.01. 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 $19.81 and resistance in the $20.21 range. Technical indicators for the stock are Bearish. For a hedged play on Aluminum Corporation of China (ACH), look at the Jan '12 $20.00 covered call for a net debit in the $18.21 area. That is also the break-even stock price for this trade. This covered call has a duration of 184 days, provides 9.00% downside protection and an assigned return rate of 9.83% for an annualized return rate of 19.50% (for comparison purposes only). Aluminum Corporation of China (ACH) has a current annual dividend yield of 0.18%. [THA-Seven Summits Research]