Posted: Tuesday, August 30, 2011 7:59 AM EDT

China Petroleum and Chemcial (SNP.) closed Monday's winning trading session at $97.56. In the past year, the stock has hit a 52-week low of $78.98 and 52-week high of $111.92. China Petroleum and Chemcial (SNP) stock has been showing support around $95.11 and resistance in the $98.85 range. Technical indicators for the stock are Bullish. For a hedged play on China Petroleum and Chemcial (SNP), look at the Oct '11 $95.00 covered call for a net debit in the $92.36 area. That is also the break-even stock price for this trade. This covered call has a duration of 53 days, provides 5.33% downside protection and an assigned return rate of 2.86% for an annualized return rate of 19.69% (for comparison purposes only). China Petroleum and Chemcial (SNP) has a current annual dividend yield of 3.12%. [FBB-Seven Summits Research]