Reliance Steel and Aluminum (RS) Trading Near $50.78 Resistance Level

Reliance Steel & Aluminum Co （NYSE: RS） closed Friday's trading session at $49.81. In the past year, 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 $49.06 and resistance in the $50.78 range. Technical indicators for the stock are Bullish and S&P gives RS a positive 4 STARS （out of 5） buy rating. For a hedged play on this stock, look at the Mar '11 $49.00 covered call for a net debit in the $45.81 area. That is also the break-even stock price for this trade. This covered call has a duration of 89 days, provides 8.03% downside protection and an assigned return rate of 6.96% for an annualized return rate of 28.56% （for comparison purposes only）. Reliance Steel and Aluminum has a current annual dividend yield of 0.82%.