Reliance Steel and Aluminum (RS) PriceWatch Alert for May 4, 2009

Reliance Steel and Aluminum (NYSE: RS) closed yesterday at $36.28. So far the stock has hit a 52-week low of $12.58 and 52-week high of $78.44. Reliance Steel and Aluminum stock has been showing support around 33.55 and resistance in the 38.91 range. Technical indicators for the stock are Bullish and S&P gives RS a weak 2 STAR (out of 5) sell rating. RS appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Sep '09 30 covered call (RS IF) for a net debit in the $26.98 area. That is also the break even stock price for this trade. This covered call has a 138 day duration, provides 25.63% downside protection and an 11.19% assigned return rate for a 29.61% annualized return rate (comparison purposes only). Reliance Steel and Aluminum has a current annual dividend yield of 1.18%. source：www.marketintelligencecenter.com