Equity Residential (EQR) PriceWatch Alert for August 5, 2009

Posted: Wednesday, August 05, 2009 8:07 AM EDT

Equity Residential (NYSE: EQR) closed yesterday at $26.09. So far the stock has hit a 52-week low of $15.68 and 52-week high of $49.00. Equity Residential stock has been showing support around 23.54 and resistance in the 27.46 range. Technical indicators for the stock are Bullish and S&P gives EQR a weak 2 STAR (out of 5) sell rating. EQR appears on the Investors Observer Stocks In The News list. JP Morgan upgraded EQR on Thursday to Neutral from Underweight. For a hedged play on this stock, look at an Oct '09 25 covered call (EQR JE) for a net debit in the $23.99 area. That is also the break even stock price for this trade. This covered call has a 73 day duration, provides 8.05% downside protection and a 4.21% assigned return rate for a 21.05% annualized return rate (comparison purposes only). Equity Residential has a current annual dividend yield of 8.04%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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