Coca Cola ( NYSE: KO ) ended the last trading session at $62.30. So far the stock has hit a 52-week low of $45.56 and 52-week high of $63.45. Coca Cola stock has been showing support around 61.49 and resistance in the 63.15 range. Technical indicators for the stock are Bullish and S&P gives KO a positive 4 STAR (out of 5) buy rating. For a hedged play on this stock, look at a Jan '08 65 covered call (KO AM) for a net debit in the $61.45 area. That is also the break even stock price for this trade. This covered call has a 54 day duration, provides 1.36% downside protection and a 5.78% assigned return rate for a 39.05% annualized return rate (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 KO Jan '09 40 Call (VKO AH) and selling the Jan '08 65 call (KO AM) for a $22.15 debit. The trade has a 54 day life and would provide 0.24% downside protection and a 12.87% assigned return rate for an 86.97% annualized return rate (for comparison purposes only). Coca Cola has a current annual dividend yield of 2.20%. [IHF - Investors Observer]