Reliance Steel and Aluminum (RS) PriceWatch Alert Could Hit 23.61% Return
Posted: Friday, May 15, 2009 8:07 AM EDT
By: Market Intelligence Center Staff
Reliance Steel and Aluminum (NYSE: RS) closed yesterday at $33.51. So far the stock has hit a 52-week low of $12.58 and 52-week high of $78.44. Reliance Steel and Aluminum stock has been showing support around 30.84 and resistance in the 35.38 range. Technical indicators for the stock are Bullish and S&P gives RS a weak 2 STAR (out of 5) sell rating. RS appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Dec '09 25 covered call (RS LE) for a net debit in the $21.91 area. That is also the break even stock price for this trade. This covered call has a 218 day duration, provides 34.62% downside protection and a 14.10% assigned return rate for a 23.61% annualized return rate (comparison purposes only). Reliance Steel and Aluminum has a current annual dividend yield of 1.11%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]
CLICK HERE: FREE Reliance Steel and Aluminum (RS) Stock ReportSee what our analysts have uncovered about Reliance Steel and Aluminum (RS).