Polo Ralph Lauren (RL) 10/28/09 PriceWatch Alert Support Down To $72.64

Posted: Wednesday, October 28, 2009 8:04 AM EDT

Polo Ralph Lauren (NYSE: RL) closed yesterday at $74.93. So far the stock has hit a 52-week low of $31.22 and 52-week high of $79.80. Polo Ralph Lauren stock has been showing support around 72.64 and resistance in the 78.84 range. Technical indicators for the stock are Bullish 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 a Jan '10 70 covered call (RL AN) for a net debit in the $66.73 area. That is also the break even stock price for this trade. This covered call has an 80 day duration, provides 10.94% downside protection and a 4.90% assigned return rate for a 22.36% annualized return rate (comparison purposes only). Polo Ralph Lauren has a current annual dividend yield of 0.26%. [WBA-Seven Summits Research]

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