Aluminum Corporation of China (ACH) PriceWatch Alert Up To 21.70% Return

Posted on Thursday, September 04, 2008 8:07 AM

Aluminum Corporation of China (NYSE: ACH) closed yesterday at $20.50. 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 19.94 and resistance in the 21.24 range. Technical indicators for the stock are Bearish and S&P gives ACH a weak 2 STAR (out of 5) sell 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 $16.20 area. That is also the break even stock price for this trade. This covered call has a 135 day duration, provides 20.98% downside protection and an 8.02% assigned return rate for a 21.70% annualized return rate (comparison purposes only). Aluminum Corporation of China has a current annual dividend yield of 1.70%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]