Home Properties (HME) 11/3/09 PriceWatch Alert Could Hit 35.00% Return

Posted: Tuesday, November 03, 2009 8:30 AM EDT

Home Properties (NYSE: HME) closed yesterday at $38.90. So far the stock has hit a 52-week low of $23.35 and 52-week high of $44.94. Home Properties stock has been showing support around 37.08 and resistance in the 40.40 range. Technical indicators for the stock are Bearish and S&P gives HME a very positive 5 STAR (out of 5) strong buy rating. HME appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 40 covered call (HME AH) for a net debit in the $37.35 area. That is also the break even stock price for this trade. This covered call has a 74 day duration, provides 3.98% downside protection and a 7.10% assigned return rate for a 35.00% annualized return rate (comparison purposes only). Home Properties has a current annual dividend yield of 6.82%. [ATU-Seven Summits Research]

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