Reliance Steel and Aluminum (RS) 9/15/10 PriceWatch Alert Targets 35.00% Return

Reliance Steel and Aluminum （NYSE: RS） closed yesterday at $41.01. 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 39.70 and resistance in the 42.32 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 41 covered call for a net debit in the $37.61 area. That is also the break even stock price for this trade. This covered call has a 94 day duration, provides 8.29% downside protection and a 9.01% assigned return rate for a 35.00% annualized return rate （comparison purposes only）. Reliance Steel and Aluminum has a current annual dividend yield of 0.98%.