China Telecom closed yesterday at $53.89. So far the stock has hit a 52-week low of $45.31 and 52-week high of $98.66. China Telecom stock has been showing support around 52.23 and resistance in the 54.99 range. Technical indicators for the stock are Bearish and S&P gives CHA a neutral 3 STAR (out of 5) hold rating. CHA appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Sep '08 50 covered call (CHA IJ) for a net debit in the $46.99 area. That is also the break even stock price for this trade. This covered call has an 80 day duration, provides 12.80% downside protection and a 6.41% assigned return rate for a 29.23% annualized return rate (comparison purposes only). China Telecom has a current annual dividend yield of 2.00%.

Source:marketintelligencecenter