Starbucks ( NasdaqNM: SBUX ) ended the last trading session at $26.17. So far the stock has hit a 52-week low of $25.22 and 52-week high of $40.01. Starbucks stock has been showing support around 25.69 and resistance in the 26.67 range. Technical indicators for the stock are Bearish and S&P gives SBUX a positive 4 STAR (out of 5) buy rating. For a hedged play on this stock, look at an Apr '08 27.50 covered call for a net debit in the $24.52 area. That is also the break even stock price for this trade. This covered call has a 173 day duration, provides 6.30% downside protection and a 12.15% assigned return rate for a 25.64% 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 SBUX Jan '09 15 Call and selling the Apr '08 27.50 call for a $10.70 debit. The trade has a 173 day life and would provide 1.80% downside protection and a 16.82% assigned return rate for a 35.49% annualized return rate (for comparison purposes only). Starbucks Does not pay dividends at this time. [IHF - Investors Observer]