Reliance Steel and Aluminum (RS) Showing Bearish Technicals With Support At $50.39

Reliance Steel and Aluminum (NYSE:RS) closed Friday's winning trading session at $53.09. 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 $50.39 and resistance in the $54.89 range.

Technical indicators for the stock are Bearish 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 $47.29 area. That is also the break-even stock price for this trade. This covered call has a duration of 96 days, provides 10.92% downside protection and an assigned return rate of 5.73% for an annualized return rate of 21.79%