Reliance Steel and Aluminum (RS) PriceWatch Alert for September 7, 2010

Reliance Steel and Aluminum （NYSE: RS） ended the last trading session at $40.57. So far the stock has hit a 52-week low of $34.58 and 52-week high of $55.47. Reliance Steel and Aluminum stock has been showing support around 39.82 and resistance in the 41.16 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 Dec '10 40 covered call for a net debit in the $36.77 area. That is also the break even stock price for this trade. This covered call has a 102 day duration, provides 9.37% downside protection and an 8.78% assigned return rate for a 31.43% annualized return rate （comparison purposes only）。 Reliance Steel and Aluminum has a current annual dividend yield of 1.01%