Royal Bank of Canada (RY) Down 3% Yesterday And Stock Trading In Tight Support/Resistance Range

Posted: Wednesday, October 28, 2009 8:50 AM EDT

Royal Bank of Canada (NYSE: RY) closed yesterday at $50.60. So far the stock has hit a 52-week low of $20.51 and 52-week high of $55.08. Royal Bank of Canada stock has been showing support around 49.15 and resistance in the 52.81 range. Technical indicators for the stock are Bearish and S&P gives RY a neutral 3 STAR (out of 5) hold rating. RY appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Dec '09 50 covered call (RY LJ) for a net debit in the $47.90 area. That is also the break even stock price for this trade. This covered call has a 52 day duration, provides 5.34% downside protection and a 4.38% assigned return rate for a 30.77% annualized return rate (comparison purposes only). Royal Bank of Canada has a current annual dividend yield of 3.50%. [WBA-Seven Summits Research]

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