Polo Ralph Lauren (RL) Jumped Almost 6% Yesterday And Still Well Below Resistance

Posted: Friday, October 30, 2009 8:29 AM EDT

Polo Ralph Lauren (NYSE: RL) closed yesterday at $75.94. 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 71.59 and resistance in the 78.41 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 Dec '09 75 covered call (RL LO) for a net debit in the $70.94 area. That is also the break even stock price for this trade. This covered call has a 50 day duration, provides 6.58% downside protection and a 5.72% assigned return rate for a 41.78% annualized return rate (comparison purposes only). Polo Ralph Lauren has a current annual dividend yield of 0.27%. [FBB-Seven Summits Research]

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