Netease.com (NASDAQ:NTES) closed Monday's positive trading session at $47.71. In the past year, the stock has hit a 52-week low of $35.20 and 52-week high of $55.00. Netease.com (NTES) stock has been showing support around $46.62 and resistance in the $48.54 range. Technical indicators for the stock are Neutral. For a hedged play on Netease.com (NTES), look at the Oct '11 $46.00 covered call for a net debit in the $43.41 area. That is also the break-even stock price for this trade. This covered call has a duration of 53 days, provides 9.01% downside protection and an assigned return rate of 5.97% for an annualized return rate of 41.09% (for comparison purposes only). A lower-cost hedged play for Netease.com (NTES) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the Netease.com (NTES) Jan '13 $20.00 call and selling the Oct '11 $46.00 call for a total debit of $25.35. The trade has a lifespan of 53 days and would provide 4.95% downside protection and an assigned return rate of 2.56% for an annualized return rate of 18% (for comparison purposes only). Netease.com (NTES) has a current trailing average dividend yield of 0%. [ABR-Seven Summits Research]