Polo Ralph Lauren (RL) PriceWatch Alert Could Hit 32.50% Return

Posted: Monday, July 06, 2009 8:07 AM EDT

Polo Ralph Lauren (NYSE: RL) closed yesterday at $51.60. So far the stock has hit a 52-week low of $31.22 and 52-week high of $82.02. Polo Ralph Lauren stock has been showing support around 49.84 and resistance in the 54.28 range. Technical indicators for the stock are Neutral and S&P gives RL a neutral 3 STAR (out of 5) hold rating. RL appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Oct '09 50 covered call (RL JJ) for a net debit in the $45.80 area. That is also the break even stock price for this trade. This covered call has a 103 day duration, provides 11.24% downside protection and a 9.17% assigned return rate for a 32.50% annualized return rate (comparison purposes only). Polo Ralph Lauren has a current annual dividend yield of 0.37%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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