Ralcorp Holdings Inc. (RAH) 11/2/09 PriceWatch Alert At $50.85 Break Even

Posted: Monday, November 02, 2009 8:43 AM EDT

Ralcorp Holdings Inc. (NYSE: RAH) ended the last trading session at $53.70. 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 52.80 and resistance in the 55.40 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 Mar '10 55 covered call (RAH CK) for a net debit in the $50.85 area. That is also the break even stock price for this trade. This covered call has a 138 day duration, provides 5.31% downside protection and an 8.16% assigned return rate for a 21.59% annualized return rate (comparison purposes only). Ralcorp Holdings does not pay dividends at this time. [ABR-Seven Summits Research]

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