Baidu.com (NASDAQ:BIDU) closed Monday's unsure trading session at $144.23. In the past year, the stock has hit a 52-week low of $85.13 and 52-week high of $165.96. Baidu.com (BIDU) stock has been showing support around $138.94 and resistance in the $147.64 range. Technical indicators for the stock are Bullish and S&P gives Baidu.com (BIDU) a positive 4 STARS (out of 5) buy rating. For a hedged play on Baidu.com (BIDU), look at the Dec '11 $140.00 covered call for a net debit in the $125.53 area. That is also the break-even stock price for this trade. This covered call has a duration of 95 days, provides 12.97% downside protection and an assigned return rate of 11.53% for an annualized return rate of 44.29% (for comparison purposes only). A lower-cost hedged play for Baidu.com (BIDU) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the Baidu.com (BIDU) Jan '13 $55.00 call and selling the Dec '11 $140.00 call for a total debit of $74.70. The trade has a lifespan of 95 days and would provide 10.07% downside protection and an assigned return rate of 13.79% for an annualized return rate of 53% (for comparison purposes only). Baidu.com (BIDU) has a current trailing average dividend yield of 0%. [THA-Seven Summits Research]