Option Investor
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Watch List of Bearish Candidates

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Play Editor's Note:

There are no new plays for OI tonight but I am listing a few possibilities I would seriously consider as bearish candidates.

AIZ: The bounce from last fall has definitely rolled over. Look for a drop under the 50-dma or the $25.00 mark as a potential entry point to buy puts. Target the $20.50-20.00 zone.

ARE: This is a REIT stock. Shares have built what appear to be a bearish double top pattern. Consider bearish positions now with a stop loss above $60.50 or $61.00. I would expect a bounce near the 50-dma but broken support near $60 should be resistance. I would target the $50 region.

ESS: This is another REIT stock. ESS has broken down from its recent consolidation and is now testing the 2008 lows. I would look for another failed rally near $65.00 with a very tight stop or a more likely entry point would be a breakdown under support at $60.00. Consider targets at $55 and $50.

MMM: This Dow-component stock does not move very fast but the trend is lower. Use a trigger under $50.00 as an entry point. Target the $55 and $50 levels but give yourself enough time to get there.

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