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Potential Reliance Steel and Aluminum (RS) Trade Has $46.87 Breakeven
Edited by : AL CIRCLE
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Reliance Steel and Aluminum (NYSE:RS) closed Tuesday's winning trading session at $49.67. In the past year, the stock has hit a 52-week low of $34.58 and 52-week high of $60.60. Reliance Steel and Aluminum (RS) stock has been showing support around $49.09 and resistance in the $49.99 range. Technical indicators for the stock are Bearish and S&P gives Reliance Steel and Aluminum (RS) a very positive 5 STARS (out of 5) strong buy rating. For a hedged play on Reliance Steel and Aluminum (RS), look at the Sep '11 $49.00 covered call for a net debit in the $46.87 area. That is also the break-even stock price for this trade. This covered call has a duration of 59 days, provides 5.64% downside protection and an assigned return rate of 4.54% for an annualized return rate of 28.11% (for comparison purposes only). Reliance Steel and Aluminum (RS) has a current annual dividend yield of 0.99%.
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