Editor's Note:

In addition to EQR tonight readers may want to check out shares of AVB again. AVB's bounce has rolled over and the stock looks like another bearish candidate.


NEW DIRECTIONAL PUT PLAYS

Equity Residential - EQR - close: 54.06 change: -0.54

Stop Loss: 55.10
Target(s): 50.05
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Many of the REIT stocks have turned sharply lower in November. That might be due to investors selling these normally higher-dividend stocks ahead of higher taxes in 2013. Shares of EQR are currently hovering near support at $54.00. More aggressive traders may want to buy puts now. I am suggesting small bearish positions if EQR trades at $53.65 or lower. Our short-term target is $50.05. You may want to aim lower but I am expecting $50 to offer some psychological support.

Trigger @ 53.65

- Suggested Positions -

buy the 2013 Jan $55 PUT (EQR1319m55) current ask $2.60

Annotated Chart:

Entry on November xx at $ xx.xx
Average Daily Volume = 1.69 million
Listed on November 21, 2012