May 14, 2013 (Marketintelligencecenter.com via COMTEX) -- Ryland Group Inc (NYSE:RYL) closed Monday's trading session at $49.56. In the past year, the stock has hit a 52-week low of $19.25 and 52-week high of $49.91. Ryland Group (RYL) stock has been showing support around $48.05 and resistance in the $50.67 range. Technical indicators for the stock are Bullish and S&P gives Ryland Group (RYL) a neutral 3 STARS (out of 5) hold rating. For a hedged play on Ryland Group (RYL), look at the Jul '13 $49.00 covered call for a net debit in the $46.26 area. That is also the break-even stock price for this trade. This covered call has a duration of 67 days, provides 6.66% downside protection and an assigned return rate of 5.92% for an annualized return rate of 32.27% (for comparison purposes only). A lower-cost hedged play for Ryland Group (RYL) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the Ryland Group (RYL) Jan '14 $30.00 call and selling the Jul '13 $49.00 call for a total debit of $17.10. The trade has a lifespan of 67 days and would provide 4.96% downside protection and an assigned return rate of 11.11% for an annualized return rate of 61% (for comparison purposes only). Ryland Group (RYL) has a current annual dividend yield of 0.25%.
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As of Friday, 05-10-2013 23:59, the latest Comtex SmarTrendA? Alert,
an automated pattern recognition system, indicated a DOWNTREND on
06-04-2012 for RYL @ $19.96.
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