Posted: Thursday, August 18, 2011 7:53 AM EDT

China Petroleum and Chemcial (SNP.) closed Wednesday's volatile trading session at $87.66. In the past year, the stock has hit a 52-week low of $77.79 and 52-week high of $111.92. China Petroleum and Chemcial (SNP) stock has been showing support around $86.67 and resistance in the $89.05 range. Technical indicators for the stock are Bearish. For a hedged play on China Petroleum and Chemcial (SNP), look at the Oct '11 $85.00 covered call for a net debit in the $82.06 area. That is also the break-even stock price for this trade. This covered call has a duration of 65 days, provides 6.39% downside protection and an assigned return rate of 3.58% for an annualized return rate of 20.12% (for comparison purposes only). China Petroleum and Chemcial (SNP) has a current annual dividend yield of 3.20%.