Reliance Steel and Aluminum (RS) 11/18/09 PriceWatch Alert With Support Around $39.69
Posted: Wednesday, November 18, 2009 8:25 AM EDT
By: Market Intelligence Center Staff
Reliance Steel and Aluminum (NYSE: RS) closed yesterday at $41.47. 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 39.69 and resistance in the 42.45 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 $36.37 area. That is also the break even stock price for this trade. This covered call has a 122 day duration, provides 12.30% downside protection and a 9.98% assigned return rate for a 29.86% annualized return rate (comparison purposes only). Reliance Steel and Aluminum has a current annual dividend yield of 1.02%. [WBA-Seven Summits Research]
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