May 08, 2013 (Marketintelligencecenter.com via COMTEX) -- DJ US Real Estate (AMEX:IYR) closed Tuesday's trading session at $74.02. In the past year, the ETF has hit a 52-week low of $58.88 and 52-week high of $74.05. DJ US Real Estate (IYR) has been showing support around $73.29 and resistance in the $74.41 range. Technical indicators for the ETF are Bullish. For a hedged play on DJ US Real Estate (IYR), look at the Sep '13 $74.00 covered call for a net debit in the $72.17 area. That is also the break-even price for this trade. This covered call has a duration of 136 days, provides 2.50% downside protection and an assigned return rate of 2.54% for an annualized return rate of 6.81% (for comparison purposes only). A lower-cost hedged play for DJ US Real Estate (IYR) would use a longer term call option in place of the covered call ETF purchase. To use this strategy look at going long the DJ US Real Estate (IYR) Jan '14 $67.00 call and selling the Sep '13 $74.00 call for a total debit of $5.70. The trade has a lifespan of 136 days and would provide 1.78% downside protection and an assigned return rate of 22.81% for an annualized return rate of 61% (for comparison purposes only). DJ US Real Estate (IYR) has a current annual distribution yield of 3.34%.

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