Aluminum Corporation of China (ACH) PriceWatch Alert Up To 24.42% Downside Protection

Posted on Tuesday, August 26, 2008 8:07 AM

Aluminum Corporation of China (NYSE: ACH) closed yesterday at $21.70. So far the stock has hit a 52-week low of $19.60 and 52-week high of $90.95. Aluminum Corporation of China stock has been showing support around 21.18 and resistance in the 22.40 range. Technical indicators for the stock are Bearish and S&P gives ACH a neutral 3 STAR (out of 5) hold rating. ACH appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Jan '09 17.50 covered call (ACH AW) for a net debit in the $16.40 area. That is also the break even stock price for this trade. This covered call has a 144 day duration, provides 24.42% downside protection and a 6.71% assigned return rate for a 17.00% annualized return rate (comparison purposes only). Aluminum Corporation of China has a current annual dividend yield of 1.74%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]