Ralcorp Holdings Inc. (RAH) 10/29/09 PriceWatch Alert Targets 3.14% Downside Protection
Posted: Thursday, October 29, 2009 8:32 AM EDT
By: Market Intelligence Center Staff
Ralcorp Holdings Inc. (NYSE: RAH) closed yesterday at $54.15. 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 53.44 and resistance in the 55.56 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 55 covered call (RAH LK) for a net debit in the $52.45 area. That is also the break even stock price for this trade. This covered call has a 51 day duration, provides 3.14% downside protection and a 4.86% assigned return rate for a 34.80% annualized return rate (comparison purposes only). Ralcorp Holdings does not pay dividends at this time. [THA-Seven Summits Research]
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