Ryder System (R) Could Break Out Of Resistance Levels Today

Posted: Wednesday, November 25, 2009 8:56 AM EDT

Ryder System (NYSE: R) closed yesterday at $41.55. So far the stock has hit a 52-week low of $19.00 and 52-week high of $46.58. Ryder System stock has been showing support around 40.57 and resistance in the 42.59 range. Technical indicators for the stock are Bullish and S&P gives R a neutral 3 STAR (out of 5) hold rating. R appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 40 covered call (R AH) for a net debit in the $38.45 area. That is also the break even stock price for this trade. This covered call has a 52 day duration, provides 7.46% downside protection and a 4.03% assigned return rate for a 28.30% annualized return rate (comparison purposes only). Ryder System has a current annual dividend yield of 2.43%. [WBA-Seven Summits Research]

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