Arcelor Mittal (NYSE:MT) closed Tuesday’s choppy trading session at $37.88. In the past year, the stock has hit a 52-week low of $26.28 and 52-week high of $47.25. Arcelor Mittal stock has been showing support around $36.73 and resistance in the $38.47 range. Technical indicators for the stock are Bullish. For a hedged play on this stock, look at the Jun ’11 $39.00 covered call for a net debit in the $35.12 area. That is also the break-even stock price for this trade. This covered call has a duration of 143 days, provides 7.29% downside protection and an assigned return rate of 11.05% for an annualized return rate of 28.20% (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 MT Jan ’12 $25.00 call and selling the Jun ’11 $39.00 call for a total debit of $11.09. The trade has a lifespan of 143 days and would provide 4.73% downside protection and an assigned return rate of 26.24% for an annualized return rate of 67% (for comparison purposes only). Arcelor Mittal has a current annual dividend yield of 1.73%. [ABR-Seven Summits Research]