Oracle (NasdaqNM: ORCL) closed yesterday at $21.30. So far the stock has hit a 52-week low of $13.80 and 52-week high of $22.95. Oracle stock has been showing support around 20.59 and resistance in the 21.85 range. Technical indicators for the stock are Bearish and S&P gives ORCL a neutral 3 STAR (out of 5) hold rating. ORCL appears on the Investors Observer Analysts Favorites list. For a hedged play on this stock, look at a Mar '10 20 covered call (ORQ CD) for a net debit in the $18.95 area. That is also the break even stock price for this trade. This covered call has a 142 day duration, provides 11.03% downside protection and a 5.54% assigned return rate for a 14.24% 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 ORCL Jan '11 10 Call (VOC AB) and selling the Mar '10 20 call (ORQ CD) for a $9.15 debit. The trade has a 142 day life and would provide 10.09% downside protection and a 9.29% assigned return rate for a 24.00% annualized return rate (for comparison purposes only). Oracle has a current annual dividend yield of 0.91%.