NEW DIRECTIONAL PUT PLAYS
Simon Property Group â€“ SPG â€“ close: 82.27 change: -2.76 stop: 85.75
Simon Property Group, Inc. (Simon Property) is a self-administered and self-managed real estate investment trust (REIT) company. The Company owns, develops and manages retail real estate properties, which consist primarily of regional malls, Premium Outlet centers, The Mills and community/lifestyle centers. As of December 31, 2009, the Company owned or held an interest in 321 income-producing properties in the United States, which consisted of 162 regional malls, 41 Premium Outlet centers, 67 community/lifestyle centers, 36 properties acquired in the 2007 acquisition of The Mills Corporation, or the Mills acquisition, and 15 other shopping centers or outlet centers in 41 states and Puerto Rico. On February 4, 2010, the Company and its partner entered into an agreement to sell all of the interests in Simon Ivanhoe S.Ã .r.l (Simon Ivanhoe), which owns seven shopping centers located in France and Poland.(source: company press release or website)
Why We Like It:
SPG has broken out of a bull flag and looks vulnerable. The stock has a tendency to trend well and appears to be reversing now. It is also below its 20-day SMA and has limited support prior the $79.50 level which is our first target. I would like to see a bounce in SPG which I think will be sold into to form a lower high on its daily chart. The stock should find resistance at around the $84.00 level. I want to buy PUTS if SPG trades up to $83.75. Our 2nd target is $77.10. We'll place a stop at $86.35 which is above its 20-day SMA and at the top of a congestion area. Our time frame is about two weeks as SPG reports earnings on April 30.
Trigger to buy puts if SPG trades to $83.75
Suggested Position: BUY MAY PUT $80.00, current ask $2.95, estimated ask at trigger $2.35.
Entry on April xxth at $ xx.xx
Earnings Date 4/30/2010
Average Daily Volume = 2.6 million
Listed on April 17th, 2010