Stock Option Advisory

Bearish Trading REITs Returned +4.2% for Dec 06

In a previous article, “Bearish Trading & REITs”, we outlined a bear call credit spreads strategy for Real Estate Investment Trusts (REITs). In the article, a bear call credit spreads position for Mills Corp. (MLS) was selected with a maximum return of +7.5%. In article, “Bearish Trading REITs Returned 7.5%” we selected another bear call credit spreads position for Mills Corp which generated a very nice return of +4.2% in only 57 days.

Competitors for MLS include: Developers Diversified Realty Corp. (DDR), General Growth Properties Inc. (GGP), Simon Property Group Inc. (SPG), Entertainment Properties Trust (EPR), and Macerich Co. (MAC).

Since we don’t see any improvement in the real-estate market anytime soon, we’ll revisit the REIT bear call credit spreads strategy one more time. Using PowerOptions stock options search engine SmartSearchXL, we searched for bear call credit spreads stock options for REITs for options expiration in January of 2007. The results are shown below:

SmartSearchXL bear call credit spreads search December 22
Bid Buy
Ask %Return
MLS 20.06 (-0.05) MLSAX 07 JAN 22.5 (29) 0.3 MLSAE 07 JAN 25.0 (29) 0.1 8.7

One attractive bear call credit spreads REIT position was found for MLS, the same REIT stock uncovered in the previous bear call credit spreads analysis, with a potential return of 8.7%, in only 29 days. As long as the price of MLS stock remains below $22.5 at options expiration, the position will be fully profitable.

PowerOptions provides a free 14-day trial of its service. So join PowerOptions today, and you too can start reaping the benefits of the REIT bear call credit spreads investment strategy.

PowerOptions provides Internet based tools for analyzing stock options with specific search criteria and for finding potentially lucrative option income. For those seeking to execute a bear call credit spreads investment strategy for their personal portfolios, PowerOptions provides an Internet based search engine for finding potentially lucrative income producing bear call credit spreads stock options positions.

PowerOptions’ sister company PowerOptionsApplied provides expert stock option trading recommendations. PowerOptionsApplied specializes in covered calls, iron condor and selling naked puts stock options strategy recommendations. PowerOptionsApplied provides a 30-day risk free trial of its service.

[tags]DDR, Developers Diversified Realty Corp., EPR, Entertainment Properties Trust, GGP, General Growth Properties Inc., MAC, Macerich Co., SPG, Simon Property Group Inc., bear call credit spreads, investment strategy, iron condor, option income, poweroptions, selling naked puts, stock option trading, stock options[/tags]

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