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.


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