Nalco (NLC) Trading Near $29.18 Resistance Level

Nalco (NYSE:NLC) closed Tuesday's meandering trading session at $28.77. In the past year, the stock has hit a 52-week low of $20.70 and 52-week high of $32.62. Nalco (NLC) stock has been showing support around $28.00 and resistance in the $29.18 range. Technical indicators for the stock are Bullish and S&P gives Nalco (NLC) a neutral 3 STARS (out of 5) hold rating. For a hedged play on Nalco (NLC), look at the Dec '11 $28.00 covered call for a net debit in the $27.02 area. That is also the break-even stock price for this trade. This covered call has a duration of 164 days, provides 6.08% downside protection and an assigned return rate of 3.63% for an annualized return rate of 8.07% (for comparison purposes only). Nalco (NLC) has a current annual dividend yield of 0.50%.