01 SEPTEMBER 2011China Aluminium Network
Potential Reliance Steel and Aluminum (RS) Trade Has $37.07 Breakeven
Edited by : AL CIRCLE
1 min read
Reliance Steel and Aluminum (NYSE:RS) closed Monday's dramatic trading session at $40.87. In the past year, the stock has hit a 52-week low of $36.62 and 52-week high of $60.60. Reliance Steel and Aluminium (RS) stock has been showing support around $39.01 and resistance in the $41.87 range. Technical indicators for the stock are Bearish and S&P gives Reliance Steel and Aluminium (RS) a very positive 5 STARS (out of 5) strong buy rating. For a hedged play on Reliance Steel and Aluminium (RS), look at the Oct '11 $39.00 covered call for a net debit in the $37.07 area. That is also the break-even stock price for this trade. This covered call has a duration of 53 days, provides 9.30% downside protection and an assigned return rate of 5.21% for an annualized return rate of 35.86% (for comparison purposes only). Reliance Steel and Aluminium (RS) has a current annual dividend yield of 1.28%.
Previous article
Kotak Commodity outlook on aluminum
Next articleIndia's NALCO issues 7,500 T aluminium exports tender-source
Grow with
AL Circle
