NEW DIRECTIONAL PUT PLAYS

Avalonbay Communities - AVB - close: 130.32 change: -0.84

Stop Loss: 132.05
Target(s): 121.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
High dividend stocks could see continued selling pressure as investors choose to exit positions now in 2012 before taxes go up in 2013. Combine that with the market's general downward trend and AVB could be in trouble. Shares are testing support at the $130 level.

I am suggesting a trigger to buy puts at $129.75 with a stop loss at $132.05. Our target is $121.50. I will point out that the lows back in February 2012 were in the $129.60-129.25 range. Readers may want to wait for a drop below $129.25 as an alternative entry point.

Trigger @ 129.75

- Suggested Positions -

buy the DEC $125 PUT (AVB1222x125) current ask $1.40

Annotated Chart:

Entry on November xx at $ xx.xx
Average Daily Volume = 593 thousand
Listed on November 13, 2012


Las Vegas Sands - LVS - close: 42.51 change: -0.95

Stop Loss: 44.05
Target(s): 36.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Asian properties have been the main source of new revenues for many of the casino companies in recent years. Locations like Macau and Singapore have been driving growth. There was a Bloomberg article out recently that said Singapore casinos appear to be slowing down as the country's economy contracts. LVS said their Singapore property just reported their lowest levels of gambling revenues in 18 months.

Shares of LVS looks poised for more declines now that the oversold bounce from Friday has failed. Friday's low was $42.35. I am suggesting a trigger to buy puts at $42.25. Our target is $36.50 but more conservative traders may want to exit in the $38.50-38.00 area.

Trigger @ 42.25

- Suggested Positions -

buy the DEC $40 PUT (LVS1222x40) current ask $0.94

- or -

buy the 2013 Jan $40 PUT (LVS1319m40) current ask $1.52

Annotated Chart:

Entry on November xx at $ xx.xx
Average Daily Volume = 6.4 million
Listed on November 13, 2012