Ralcorp Holdings Inc. (RAH) In Downward Trend With Bearish Technicals
Posted: Friday, October 09, 2009 9:07 AM EDT
By: Market Intelligence Center Staff
Ralcorp Holdings Inc. (NYSE: RAH) closed yesterday at $58.52. 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 59.55 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 $56.52 area. That is also the break even stock price for this trade. This covered call has a 71 day duration, provides 3.42% downside protection and a 6.16% assigned return rate for a 31.65% annualized return rate (comparison purposes only). Ralcorp Holdings does not pay dividends at this time. [FBB-Seven Summits Research]
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