Century Aluminum (CENX) Showing Bullish Technicals With Resistance At $20.64

Century Aluminum (NASDAQ: CENX) closed Tuesday's trading session at $20.05. In the past year, the stock has hit a 52-week low of $8.25 and 52-week high of $20.76. Century Aluminum stock has been showing support around $19.24 and resistance in the $20.64 range. Technical indicators for the stock are Bullish. For a hedged play on this stock, look at the Sep '11 $18.00 covered call for a net debit in the $16.65 area. That is also the break-even stock price for this trade. This covered call has a duration of 143 days, provides 16.96% downside protection and an assigned return rate of 8.11% for an annualized return rate of 20.70% (for comparison purposes only). A lower-cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the CENX Jan '12 $7.50 call and selling the Sep '11 $18.00 call for a total debit of $9.05. The trade has a lifespan of 143 days and would provide 17.46% downside protection and an assigned return rate of 16.02% for an annualized return rate of 41% (for comparison purposes only). Century Aluminum does not pay dividends at this time.