NRG Energy (NYSE: NRG) closed yesterday at $28.95. So far the stock has hit a 52-week low of $14.39 and 52-week high of $39.24. NRG Energy stock has been showing support around 27.68 and resistance in the 29.64 range. Technical indicators for the stock are Bullish and S&P gives NRG a positive 4 STAR (out of 5) buy rating. NRG appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Dec '09 27.50 covered call (NRG LY) for a net debit in the $25.35 area. That is also the break even stock price for this trade. This covered call has a 124 day duration, provides 12.44% downside protection and an 8.48% assigned return rate for a 24.97% 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 NRG Jan '11 12.50 Call (OBD AR) and selling the Dec '09 27.50 call (NRG LY) for a $13.30 debit. The trade has a 124 day life and would provide 10.88% downside protection and a 12.78% assigned return rate for a 38.00% annualized return rate (for comparison purposes only). NRG Energy does not pay dividends at this time. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]