Simon Property Group (NYSE: SPG) closed yesterday at $45.74.
So far the stock has hit a 52-week low of $24.27 and 52-week high of $106.43. Simon Property Group stock has been showing support around 41.58 and resistance in the 51.08 range. Technical indicators for the stock are Bullish and S&P gives SPG a very positive 5 STAR (out of 5) strong buy rating. SPG appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Oct ’09 43 covered call (SPG JI) for a net debit in the $35.54 area. That is also the break even stock price for this trade. This covered call has a 172 day duration, provides 22.30% downside protection and a 20.99% assigned return rate for a 44.54% annualized return rate (comparison purposes only). A lower cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the SPG Jan ’10 30 Call (WVT AF) and selling the Oct ’09 43 call (SPG JI) for an $8.75 debit. The trade has a 172 day life and would provide 15.28% downside protection and a 48.57% assigned return rate for a 103.00% annualized return rate (for comparison purposes only). Simon Property Group has a current annual dividend yield of 7.44%. [For more information on these strategies along with more details on possible risks go to ] Limited Time Offer: Click here for “” on leading stocks from Investors Observer. Get the right investing information at the right time. Give yourself EVERY edge in this market GO