Ryland Group (RYL) 10/6/09 PriceWatch Alert Targets 22.30% Return

Posted: Tuesday, October 06, 2009 8:32 AM EDT

Ryland Group (NYSE: RYL) closed yesterday at $19.52. So far the stock has hit a 52-week low of $9.95 and 52-week high of $24.94. Ryland Group stock has been showing support around 18.70 and resistance in the 20.54 range. Technical indicators for the stock are Bearish and S&P gives RYL a weak 2 STAR (out of 5) sell rating. RYL appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Jan '10 15 covered call (RGV AC) for a net debit in the $14.12 area. That is also the break even stock price for this trade. This covered call has a 102 day duration, provides 27.66% downside protection and a 6.23% assigned return rate for a 22.30% annualized return rate (comparison purposes only). Ryland Group has a current annual dividend yield of 0.60%. [ATU-Seven Summits Research]

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