Health Care Property Investors (HCP) 10/29/09 PriceWatch Alert With $23.86 Break Even

Posted: Thursday, October 29, 2009 8:20 AM EDT

Health Care Property Investors (NYSE: HCP) closed yesterday at $28.76. 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 27.67 and resistance in the 30.87 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 an Apr '10 25 covered call (HCP DE) for a net debit in the $23.86 area. That is also the break even stock price for this trade. This covered call has a 170 day duration, provides 17.04% downside protection and a 4.78% assigned return rate for a 10.26% annualized return rate (comparison purposes only). Health Care Property Investors has a current annual dividend yield of 6.11%. [THA-Seven Summits Research]

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