Polo Ralph Lauren (RL) 11/13/09 PriceWatch Alert Targets 9.35% Downside Protection
Posted: Friday, November 13, 2009 8:04 AM EDT
By: Market Intelligence Center Staff
Polo Ralph Lauren (NYSE: RL) closed yesterday at $79.12. So far the stock has hit a 52-week low of $31.22 and 52-week high of $83.50. Polo Ralph Lauren stock has been showing support around 77.27 and resistance in the 82.35 range. Technical indicators for the stock are Bullish and S&P gives RL a very positive 5 STAR (out of 5) strong buy rating. RL appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 75 covered call (RL AO) for a net debit in the $71.72 area. That is also the break even stock price for this trade. This covered call has a 64 day duration, provides 9.35% downside protection and a 4.57% assigned return rate for a 26.08% annualized return rate (comparison purposes only). Polo Ralph Lauren has a current annual dividend yield of 0.25%. [FBB-Seven Summits Research]
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