Reliance Steel and Aluminum (RS) 9/27/10 PriceWatch Alert Up To 37.96% Return

Reliance Steel and Aluminum （NYSE: RS） ended the last trading session at $41.82. 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 40.31 and resistance in the 42.75 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 Nov '10 41 covered call for a net debit in the $38.82 area. That is also the break even stock price for this trade. This covered call has a 54 day duration, provides 7.17% downside protection and a 5.62% assigned return rate for a 37.96% annualized return rate （comparison purposes only）. Reliance Steel and Aluminum has a current annual dividend yield of 0.98%