Reliance Steel and Aluminum (RS) 11/17/09 PriceWatch Alert Targets 33.06% Return
Posted: Tuesday, November 17, 2009 8:12 AM EDT
By: Market Intelligence Center Staff
Reliance Steel and Aluminum (NYSE: RS) closed yesterday at $40.79. 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 39.13 and resistance in the 42.13 range. Technical indicators for the stock are Bullish 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 40 covered call (RS CH) for a net debit in the $35.99 area. That is also the break even stock price for this trade. This covered call has a 123 day duration, provides 11.77% downside protection and an 11.14% assigned return rate for a 33.06% annualized return rate (comparison purposes only). Reliance Steel and Aluminum has a current annual dividend yield of 1.03%. [ATU-Seven Summits Research]
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