Reliance Steel and Aluminum (RS) 11/20/09 PriceWatch Alert Targets 15.28% Return
Posted: Friday, November 20, 2009 8:03 AM EDT
By: Market Intelligence Center Staff
Reliance Steel and Aluminum (NYSE: RS) closed yesterday at $39.66. 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 38.12 and resistance in the 40.60 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 Jun '10 35 covered call (RS FG) for a net debit in the $32.16 area. That is also the break even stock price for this trade. This covered call has a 211 day duration, provides 18.91% downside protection and an 8.83% assigned return rate for a 15.28% annualized return rate (comparison purposes only). Reliance Steel and Aluminum has a current annual dividend yield of 0.96%. [FBB-Seven Summits Research]
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