Renaissancere (RNR) 11/3/09 PriceWatch Alert Up To 9.77% Downside Protection

Posted: Tuesday, November 03, 2009 8:33 AM EDT

Renaissancere (NYSE: RNR) closed yesterday at $53.25. So far the stock has hit a 52-week low of $39.37 and 52-week high of $57.37. Renaissancere stock has been showing support around 52.04 and resistance in the 54.42 range. Technical indicators for the stock are Bearish and S&P gives RNR a neutral 3 STAR (out of 5) hold rating. RNR appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at an Apr '10 50 covered call (RNR DJ) for a net debit in the $48.05 area. That is also the break even stock price for this trade. This covered call has a 165 day duration, provides 9.77% downside protection and a 4.06% assigned return rate for an 8.98% annualized return rate (comparison purposes only). Renaissancere has a current annual dividend yield of 1.78%. [ATU-Seven Summits Research]

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