Weatherford International ( NYSE: WFT ) closed yesterday at $60.14. So far the stock has hit a 52-week low of $37.64 and 52-week high of $72.73. Weatherford International stock has been showing support around 53.68 and resistance in the 65.00 range. Technical indicators for the stock are Bearish and S&P gives WFT a neutral 3 STAR (out of 5) hold rating. For a hedged play on this stock, look at a Mar '08 60 covered call (WFT CL) for a net debit in the $55.34 area. That is also the break even stock price for this trade. This covered call has a 57 day duration, provides 7.98% downside protection and an 8.42% assigned return rate for a 53.92% 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 WFT Jan '09 30 Call (ODS AF) and selling the Mar '08 60 call (WFT CL) for a $26.60 debit. The trade has a 57 day life and would provide 5.89% downside protection and a 12.78% assigned return rate for an 82.00% annualized return rate (for comparison purposes only). Weatherford International does not pay dividends at this time. [IHF - Investors Observer]