SunTrust Banks ( NYSE: STI ) ended the last trading session at $75.67. So far the stock has hit a 52-week low of $73.61 and 52-week high of $94.18. SunTrust Banks stock has been showing support around 74.43 and resistance in the 77.65 range. Technical indicators for the stock are Bearish and S&P gives STI a weak 2 STAR (out of 5) sell rating. STI appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '08 75 covered call (STI AO) for a net debit in the $70.87 area. That is also the break even stock price for this trade. This covered call has an 110 day duration, provides 6.34% downside protection and a 5.83% assigned return rate for a 19.34% 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 STI Jan '09 50 Call (VNJ AJ) and selling the Jan '08 75 call (STI AO) for a $22.30 debit. The trade has an 110 day life and would provide 4.45% downside protection and a 12.11% assigned return rate for a 40.18% annualized return rate (for comparison purposes only). SunTrust Banks has a current annual dividend yield of 3.80%. [IHF - Investors Observer]