Ralcorp Holdings Inc. (RAH) 10/8/09 PriceWatch Alert Support Down To $57.81

Posted: Thursday, October 08, 2009 8:18 AM EDT

Ralcorp Holdings Inc. (NYSE: RAH) closed yesterday at $58.98. So far the stock has hit a 52-week low of $50.81 and 52-week high of $71.45. Ralcorp Holdings stock has been showing support around 57.81 and resistance in the 59.65 range. Technical indicators for the stock are Bearish and S&P gives RAH a neutral 3 STAR (out of 5) hold rating. RAH appears on the Investors Observer Momentum Plays list. For a hedged play on this stock, look at a Dec '09 60 covered call (RAH LL) for a net debit in the $56.78 area. That is also the break even stock price for this trade. This covered call has a 72 day duration, provides 3.73% downside protection and a 5.67% assigned return rate for a 28.75% annualized return rate (comparison purposes only). Ralcorp Holdings does not pay dividends at this time. [THA-Seven Summits Research]

Click Symbol For More News On: (RAH)