Add VNO Puts

Playing a REIT Fall

By Bryan Bottarelli
Wednesday, November 19, 2008 11:50 AM EST
Wed, 19 Nov 2008 16:50:00 GMT

PLAY: Buy the VNO December 45 Puts (VNO XI) at or under $5.60, good for the day. Place a protective stop limit at $2.40 and a pre-determined sniper sell at $8.00

Dear Bottarelli Research Member,

I’m sure you’re aware of the recent trading patterns of mall-operator General Growth Properties (GGP – NYSE).As a $35.00 stock in September, shares of GGP are now trading hands for a mere $0.45. Brutal!

GGP

Now, this same intense selling pressure is extending itself into real estate REITS. Therefore, let’s add put options on Vornado Realty Trust (VNO) right now.

VNO

Vornado Realty Trust owns 111 office properties in New York City, Washington D.C., and Northern Virginia. They also own 111 retail properties in 9 states. As you can see from the VNO chart, today’s new 52-week low could indicate that more selling pressure is on the horizon. And if it’s anything like GGP, it could be a crushing downside move. Let’s profit off this move using VNO puts now!

PLAY: Buy the VNO December 45 Puts (VNO XI) at or under $5.60, good for the day. Place a protective stop limit at $2.40 and a pre-determined sniper sell at $8.00.

And as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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