Equity Residential (EQR) 11/2/09 PriceWatch Alert With $23.88 Break Even

Posted: Monday, November 02, 2009 8:45 AM EDT

Equity Residential (NYSE: EQR) ended the last trading session at $28.88. So far the stock has hit a 52-week low of $15.68 and 52-week high of $35.56. Equity Residential stock has been showing support around 27.40 and resistance in the 30.18 range. Technical indicators for the stock are Bearish 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. Citigroup upgraded EQR Friday to Hold from Sell. For a hedged play on this stock, look at an Apr '10 25 covered call (EQR DE) for a net debit in the $23.88 area. That is also the break even stock price for this trade. This covered call has a 166 day duration, provides 17.31% downside protection and a 4.69% assigned return rate for a 10.31% annualized return rate (comparison purposes only). Equity Residential has a current annual dividend yield of 4.90%. [ABR-Seven Summits Research]

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