Netease.com (NASDAQ:NTES) closed Friday's deflating trading session at $49.50. 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 $47.85 and resistance in the $51.83 range. Technical indicators for the stock are Bullish. For a hedged play on Netease.com (NTES), look at the Dec '11 $49.00 covered call for a net debit in the $44.10 area. That is also the break-even stock price for this trade. This covered call has a duration of 102 days, provides 10.91% downside protection and an assigned return rate of 11.11% for an annualized return rate of 39.76% (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 Dec '11 $49.00 call for a total debit of $25.10. The trade has a lifespan of 102 days and would provide 8.89% downside protection and an assigned return rate of 15.54% for an annualized return rate of 55.6% (for comparison purposes only). Netease.com (NTES) has a current trailing average dividend yield of 0%. [FBB-Seven Summits Research]