Royal Bank of Canada (RY) 11/3/09 PriceWatch Alert With Support Around $49.14

Posted: Tuesday, November 03, 2009 8:25 AM EDT

Royal Bank of Canada (NYSE: RY) closed yesterday at $50.77. 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 49.14 and resistance in the 52.00 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 Jan '10 50 covered call (RY AJ) for a net debit in the $47.77 area. That is also the break even stock price for this trade. This covered call has a 74 day duration, provides 5.91% downside protection and a 4.67% assigned return rate for a 23.03% annualized return rate (comparison purposes only). Royal Bank of Canada has a current annual dividend yield of 3.61%. [ATU-Seven Summits Research]

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