Reliance Steel and Aluminum （NYSE:RS） closed Wednesday’s deflating trading session at $54.43. In the past year, the stock has hit a 52-week low of $34.58 and 52-week high of $59.95. Reliance Steel and Aluminum stock has been showing support around $52.14 and resistance in the $57.40 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 Jun ’11 $50.00 covered call for a net debit in the $47.63 area.
That is also the break-even stock price for this trade. This covered call has a duration of 114 days, provides 12.49% downside protection and an assigned return rate of 4.98% for an annualized return rate of 15.93% （for comparison purposes only）. Reliance Steel and Aluminum has a current annual dividend yield of 0.69%.
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