Reliant Energy (RRI) NewsBite Reliant Energy (RRI) Could Be On The Move
Mar 11, 2008 (Fresh Brewed Media via COMTEX) -- Reliant Energy (NYSE: RRI) closed yesterday at $24.19. So far the stock has hit a 52-week low of $17.45 and 52-week high of $30.69. Reliant Energy stock has been showing support around 23.45 and resistance in the 24.99 range. Technical indicators for the stock are
Bullish and S&P gives RRI a positive 4 STAR (out of 5) buy rating. For a hedged play on this stock, look at a Jan '09 25 covered call (VDZ AE) for a net debit
in the $20.99 area. That is also the break even stock price for this trade. This covered call has a 312 day duration, provides 13.23% downside protection and a 19.10% assigned return rate for a 22.35% annualized return rate (comparison purposes only). A lower cost hedged play for this stock would use a longer term
call option in place of the covered call stock purchase. To use this strategy
look at going long the RRI Jan '09 19 Call (VDZ AT) and selling the Jan '09 25 call (VDZ AE) for a $4.05 debit. The trade has a 312 day life and would provide 4.71% downside protection and a 48.15% assigned return rate for a 56.00% annualized return rate (for comparison purposes only). Reliant Energy does not pay dividends at this time.
IHF - Investors Observer Goto www.iotogo.com/18w1 for our free report titled, The 18 Ways To Know When It's Time To Dump A Stock
(C) Copyright 2008, Fresh Brewed Media. All rights reserved.
-0-
SUBJECT CODE: BREAKING NEWS
Source: Comtex Wall Street News
Compliments of Scottrade.com
