Sohu com (NASDAQ: SOHU) closed Wednesday's trading session at $63.68. In the past year, the stock has hit a 52-week low of $40.05 and 52-week high of $80.94. Sohu com stock has been showing support around $62.64 and resistance in the $65.22 range. Technical indicators for the stock are Bearish. For a hedged play on this stock, look at the Feb '11 $60.00 covered call for a net debit in the $56.98 area. That is also the break-even stock price for this trade. This covered call has a duration of 51 days, provides 10.52% downside protection and an assigned return rate of 5.30% for an annualized return rate of 37.93% (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 SOHU Jan '12 $30.00 call and selling the Feb '11 $60.00 call for a total debit of $29.15. The trade has a lifespan of 51 days and would provide 7.11% downside protection and an assigned return rate of 2.92% for an annualized return rate of 21% (for comparison purposes only). Sohu com does not pay dividends at this time. [THA-Seven Summits Research]

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