Health Care Property Investors (HCP) 10/27/09 PriceWatch Alert With 6.47% Downside Protection

Posted: Tuesday, October 27, 2009 8:10 AM EDT

Health Care Property Investors (NYSE: HCP) closed yesterday at $30.12. So far the stock has hit a 52-week low of $14.26 and 52-week high of $31.42. Health Care Property Investors stock has been showing support around 29.48 and resistance in the 31.16 range. Technical indicators for the stock are Bullish and S&P gives HCP a neutral 3 STAR (out of 5) hold rating. HCP appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 30 covered call (HCP AF) for a net debit in the $28.17 area. That is also the break even stock price for this trade. This covered call has an 81 day duration, provides 6.47% downside protection and a 6.50% assigned return rate for a 29.27% annualized return rate (comparison purposes only). Health Care Property Investors has a current annual dividend yield of 6.10%. [ATU-Seven Summits Research]

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