Health Care Property Investors (HCP) 11/6/09 PriceWatch Alert Up To 17.25% Downside Protection

Posted: Friday, November 06, 2009 8:42 AM EDT

Health Care Property Investors (NYSE: HCP) closed yesterday at $28.41. So far the stock has hit a 52-week low of $14.26 and 52-week high of $31.09. Health Care Property Investors stock has been showing support around 27.56 and resistance in the 29.00 range. Technical indicators for the stock are Bearish 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 $23.51 area. That is also the break even stock price for this trade. This covered call has a 162 day duration, provides 17.25% downside protection and a 6.34% assigned return rate for a 14.28% annualized return rate (comparison purposes only). Health Care Property Investors has a current annual dividend yield of 6.20%. [FBB-Seven Summits Research]

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