Royal Bank of Canada (RY) 11/11/09 PriceWatch Alert Could Hit 12.32% Return
Posted: Wednesday, November 11, 2009 8:25 AM EDT
By: Market Intelligence Center Staff
Royal Bank of Canada (NYSE: RY) closed yesterday at $54.11. So far the stock has hit a 52-week low of $20.51 and 52-week high of $55.08. Royal Bank of Canada stock has been showing support around 52.83 and resistance in the 55.03 range. Technical indicators for the stock are Bullish and S&P gives RY a neutral 3 STAR (out of 5) hold rating. RY appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 50 covered call (RY AJ) for a net debit in the $48.91 area. That is also the break even stock price for this trade. This covered call has a 66 day duration, provides 9.61% downside protection and a 2.23% assigned return rate for a 12.32% annualized return rate (comparison purposes only). Royal Bank of Canada has a current annual dividend yield of 3.49%. [WBA-Seven Summits Research]
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