Reliance Steel and Aluminum (RS) PriceWatch Alert With 33.90% Downside Protection

Reliance Steel and Aluminum (NYSE: RS) closed yesterday at $33.04. 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 31.71 and resistance in the 34.97 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 Dec '09 25 covered call (RS LE) for a net debit in the $21.84 area. That is also the break even stock price for this trade. This covered call has a 215 day duration, provides 33.90% downside protection and a 14.47% assigned return rate for a 24.56% annualized return rate (comparison purposes only). Reliance Steel and Aluminum has a current annual dividend yield of 1.22%. source：www.marketintelligencecenter.com