REIT Downgrades - Short Targets in that Space


Hi there
I have read in Bloomberg last Friday that REITS are being downgraded. Im looking at two or three stocks in that, if anyone has better stocks with good options spreads let me know here please. Im limited in knowledge with these. But I prefer to look at charts and just see where the bearishness will start, and end at, and see where the cascade is going to best be entered to achieve. I believe LAMR will go to minus 20% and minus 30% from the peak shown on the chart from December. Due to FLD cascades higher than that shown below.

On Friday, the rout resulted in a big 3% down day for LAMR (Lamar Advertising). Im also seeing on the chart, there’s plenty of volume and not bad moves, non erratic, plenty of good interactions with FLDs and good cascades. The AMT (American Tower) is good too. But Ill do LAMR instead, to prove you need minted options to do a decent trade. Be aware, this trade has a 2% surcharge to market makers in the spread and (Implied volatility). I think that there is a strong possibility that this option market is accurately priced minus the 2%. Ill pay that for the decent trade here.

Trading Chart

Option Market


Just because the market is weak for the LAMR options, heres the setup for AMT, the top REIT stock in SP500.

Chart and option market
Save and Zoom In


AMT: First target at 133 or hold for bigger down move to -25% from peak of January.

Everything went lower this week. But weekly RSI is only at 50, moving down.