Reliance Steel and Aluminum (RS) 11/16/09 PriceWatch Alert Could Hit 20.90% Return
Posted: Monday, November 16, 2009 8:46 AM EDT
By: Market Intelligence Center Staff
Reliance Steel and Aluminum (NYSE: RS) ended the last trading session at $39.18. So far the stock has hit a 52-week low of $12.58 and 52-week high of $44.96. Reliance Steel and Aluminum stock has been showing support around 37.96 and resistance in the 40.14 range. Technical indicators for the stock are Bearish and S&P gives RS a positive 4 STAR (out of 5) buy rating. RS appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Mar '10 35 covered call (RS CG) for a net debit in the $32.68 area. That is also the break even stock price for this trade. This covered call has a 124 day duration, provides 16.59% downside protection and a 7.10% assigned return rate for a 20.90% annualized return rate (comparison purposes only). Reliance Steel and Aluminum has a current annual dividend yield of 1.00%. [ABR-Seven Summits Research]
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