NEW DIRECTIONAL CALL PLAYS

AvalonBay Commty. - AVB - close: 80.48 change: +1.09 stop: 77.90

Why We Like It:
Avalon Bay Communities is a REIT stock. The sector saw huge gains in early December only to reverse lower after Christmas. Now after a two-week correction this stock is bouncing from support. Some positive analyst comments this morning about the future of REITs certainly didn't hurt. I want to see more confirmation. Use a trigger at $82.05 to buy calls. If triggered our first target is $87.50. We will plan to exit ahead of the early February earnings report.

Suggested Options:
I'm suggesting the February calls. My preference is the $85 strike.

BUY CALL FEB 85.00 AVB-BQ open interest=247  current ask $1.85

Annotated Chart:

Entry  on   January xx at $ xx.xx <-- TRIGGER @ 82.05
Change since picked:       + 0.00
Earnings Date            02/03/10 (confirmed)
Average Daily Volume =        1.4 million  
Listed on   January 09, 2010